Disorder in Europe Could Send Brent Crashing Over 40% – Analyst
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The price of Brent oil would enter a tailspin if there is a "disorderly" breakup in the Eurozone, according to Bank of America. Analysts there are predicted a $60 price for Brent if such an event were to take place.
Alternatively, if Greece exits in a more orderly way, BofA predicts the price would drop to $80.
If Greece renegotiates the bailout and stays in the EU, the story becomes much more bullish. In that case the price could rebound to $120, say analysts.
Brent is currently trading at $107 per barrel. So, BofA's target suggests about 44 percent downside.
Brent can be traded using the ETF United States Brent Oil (NYSE: BNO). Other oil ETFs include (NYSE: USO) and (NYSE: OIL).
Alternatively, if Greece exits in a more orderly way, BofA predicts the price would drop to $80.
If Greece renegotiates the bailout and stays in the EU, the story becomes much more bullish. In that case the price could rebound to $120, say analysts.
Brent is currently trading at $107 per barrel. So, BofA's target suggests about 44 percent downside.
Brent can be traded using the ETF United States Brent Oil (NYSE: BNO). Other oil ETFs include (NYSE: USO) and (NYSE: OIL).
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