%BankofAmerica (NYSE: $BAC) sees a continued decline in %CrudeOil prices throughout 2025 as global energy demand weakens.
Analysts at Bank of America Securities are forecasting that prices for Brent crude oil, the international standard, will average $65 U.S. a barrel, and West Texas Intermediate (WTI) crude oil, the U.S. benchmark, will average $61 U.S. per barrel in 2025.
The price predictions are based on a modest increase in global oil demand of 1.1 million barrels per day (b/d) next year.
The analysts at Bank of America also anticipate an increase in non-OPEC+ oil supply, which will lead to a surplus of 800,000 barrels per day, putting downward pressure on prices.
Other issues that could impact the price of oil in the coming year include continued military conflicts in the Middle East, a global trade war, and a further weakening of demand in China.
Bank of America places a structural floor for oil prices at $60 U.S. per barrel for Brent crude.
The market for refined energy products such as gasoline and diesel are expected to face downward pressure in 2025, with rising refining capacity and tepid demand causing weak margins.
The analysts at Bank of America suggest that these market conditions are likely to persist throughout 2025, barring significant geopolitical changes or unexpected demand shifts.
West Texas Intermediate crude oil is currently trading at $69.43 U.S. per barrel. The price of Brent crude oil is at $73.47 U.S. a barrel.