Oil May Pass $100 on ‘Loose’ Policy, Merrill Lynch Says

By Will Kennedy

Oct. 5 (Bloomberg) -- Oil may jump above $100 next year as emerging market demand rises and “loose” monetary policy weakens the U.S. dollar, Bank of America Corp.’s Merrill Lynch unit said. The global economy will grow 4.2 percent next year and spare global oil production capacity is 5 percent of current demand, Merrill analysts led by Francisco Blanch said in the bank’s Global Energy Weekly. There are “upside risks” to Merrill’s $82 a barrel forecast for the fourth quarter of 2010, according to the report.

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