Oil price outlook – BAML revises crude oil outlook downwards

Bank of American Merrill Lynch (BAML) finally updated their 2010 second half crude oil numbers downwards to 78 from their earlier reiterated outlook of 92.

BAML was one of the few oil bulls left standing when oil continued its march northwards of 85, side by side by Goldman Sachs (GS). While a lot of analysts were predicting a rebound in prices (including yours truly) after Oil collapsed to below 70 dollars per barrel, the new thinking indicates that given Europe and the Euro skid zone, the likelihood of global growth coming back anytime soon is very low. Couple that with expected tightening measures in China and the whole crude oil outlook gets murkier.

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