Analysts at Bank of America cut Brent oil LCOc1 price forecast to $75/bbl across 2H24 from almost $90/bbl as well as for 2025 from $80/bbl.

BofA says weaker demand growth globally, coupled with record OPEC+ spare capacity at more than 5 million barrels per day (mbpd), dampen the oil price outlook and remove spike risks from possible geopolitical disruptions.

“Lacklustre oil demand outlook into 2025 suggests a full return of 2.2 mbpd of OPEC’s spare capacity over the same timeframe would test the lower end of our medium-term $60-80/bbl Brent oil price,” BofA analysts say.

Brent crude futures LCOc1 were up 42 cents, or 0.6% to $73.11 by 1004 GMT, with investors exercising caution ahead of key U.S. employment data as they weighed a big withdrawal from U.S. crude inventories and a delay to production hikes by OPEC+ producers.

Brent crude is down 7.2% so far this week.
Source: Reuters (Reporting by Arunima Kumar in Bengaluru)