Oil Price Forecast - BOA Merrill Lynch

[dan_s]

NEW YORK, September 19, 2016 /PRNewswire/ --

Bank of America and Merrill Lynch are very optimistic that oil prices will soon reach a bottom and begin to head towards a bullish move up through June 2017 due to equities branching out, increase in demand, and decrease in production of oil. As noted by the US equity and quantitative strategist at Bank of America Merrill Lynch, Savita Subramanian, said the bank upgraded its rating performance of energy sector from "Market weight" to "Overweight" and that it will outperform the S&P 500. International Western Petroleum, Inc. (OTCQB: INWP), Exxon Mobil Corporation (NYSE: XOM), , Approach Resources Inc. (NASDAQ: AREX), Range Resources Corp. (NYSE: RRC), Marathon Oil Corporation (NYSE: MRO).

What's charming investors back into the energy sector is the decline in capital spending. Subramanian forecasts that West Texas Intermediate oil futures will rally to $54 a barrel (+17%) by the end of the year, and as much as $69 a barrel (+49%) by June of next year.