FX.co ★ Bank of America forecasts fall in crude prices

Analysts at Bank of America Merrill Lynch expect crude oil prices to drop to as low as $39 per barrel by the end of the third quarter, The Wall Street Journal reported on June 20, Monday. The experts point to a usual decline in US demand in late summer.
The analysts note that oil prices tend to rise in the early summer season (second quarter) when people use personal transport more often. This makes oil refineries buy more crude oil to process into fuel.
A similar picture was witnessed last year when US prices went up by 25% in the second quarter of 2015. In April to June 2014, prices climbed by 3.7%.
The factor will start fading away in the third quarter leading to a possible fall in demand in the future.
However, analysts predict that crude prices will increase in mid-term prospects. They suppose that the price will advance up to $54 per barrel in the fourth quarter.
On Monday, June 20, oil prices jumped above $50 per barrel on the back of lower risks of Brexit.