US expectations of the price of a barrel of oil $ 902019/05/17 13:19:10
The decline in the US-China trade war could lead to a drop in the dollar and a rise in global demand, which, along with changes approved by the International Maritime Organization (IMO), may lead to the price of Brent crude to rise to $ 90 a barrel, Bank of America Merrill Lynch said.
"The new rules approved by the International Maritime Organization (IMO) on fuel fuel bases could result in the largest ever increase in demand for distillates," the bank said. "The final outcome is likely to be a huge increase in demand for fuel from the global power generation sector."
The new rules, which will come into force next year, will require ships using fuels with sulfur content of less than 0.5 percent, compared with 3.5 percent currently.
However, the bank said in a May 16 memo that prices could drop to $ 50 a barrel if the US-China trade war hurt consumer confidence, which could eventually lead to economic slowdown.
Oil rose to $ 73 a barrel on Friday, boosted by a series of supply cuts and fears of further disruption of oil shipments in the Middle East amid rising tensions. The price tends to end the week on gains.