BofA Merrill Lynch Cuts Oil Forecast, Sees Rough Year Ahead

Analysts at Bank of America Merrill Lynch cut their forecast for Brent crude oil prices to an average of $77 a barrel next year, and the forecast for New York-traded oil to $72 a barrel in 2015. Brent could drop below $60 a barrel in the next six months, and WTI could fall to $50 a barrel, as inventories build, the analysts said. Oil could rebound sharply by the end of next year, they said. Commodities in general are likely to be under pressure in 2015 on a "combination of a strong U.S. dollar, higher interest rates and relatively subdued growth," the analysts said. Base metals, especially aluminum and zinc, could be the exception, because of falling inventories. Gold prices could fall to $1,100 an ounce next year, the investment bank said.