Bank of America Flags Three Main Factors for Crude's Post OPEC+ Meet Price Drop

Geopolitics are at a crucial inflection point for oil prices according to BofA’s Head of Global Commodities in a CNBC interview.

• On the recent price drop, Blanch flagged three factors: “When it comes to supply, we’ve had first a lot more Russian oil than we anticipated in the first half of the year”
• “Second thing we had is way more US supply than we ever anticipated.”
• “The third factor is OPEC+ failed to delivery a coordinated cohesive agreement at their last meeting a couple of weeks ago.”
• BofA remains bullish oil for 2024. It forecasts Brent to average $90/bbl in 2024 and WTI $86/bbl. He cites geopolitical drivers such as attacks on Red Sea vessels and tensions between Guyana and Venezuela and possible Iranian sanctions as potential price drivers into next year.