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| Brent oil prices may remain at a nominal level of 70-90 USD/barrel. (Source: Bloomberg) |
Crude oil futures have fallen more than 10% in 2023, a volatile trading year due to geopolitical uncertainty and concerns about oil output from the world's major producers.
BofA also predicts that oil prices will continue to be volatile, even exacerbated by geopolitical tensions and OPEC policies.
OPEC and its allies, or OPEC+, are cutting output by about 6 million barrels per day, about 6% of global supply.
The bigger challenge for investors this year, according to BofA, is not to underestimate Saudi Arabia's oil production commitment while Brent crude oil prices are likely to remain at a nominal $70-$90/barrel due to non-OPEC production and an uncertain demand outlook.
However, BofA also sees upside from recent deals in the largest shale oil field in the US, the Permian Basin, and Occidental Petroleum, Exxon Mobil, and Chevron will be among its top picks in 2024.
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