The company said it has opened further consultation with the market on the benchmark transition. The changes, among which was inclusion of US crude WTI Midland in the Brent assessment, were announced on Feb. 22.
We received extensive feedback from market participants in support of introducing WTI Midland into the basket, but there is not agreement on how it would be fully reflected into the wider Brent complex.
The bank now expects Brent crude oil to average $60 per barrel in 2021, up from a previous estimate of $50. BofA also forecasts West Texas Intermediate (WTI) crude prices to average $57 a barrel this year.
Brent prices could temporarily spike to $70 a barrel in the second quarter of the year, the bank's analysts said in a note.
Brent crude was up 35 cents, or 0.5%, at $64.69 a barrel.
US West Texas Intermediate (WTI) crude futures gained 48 cents, or 0.8%, to $61.62 a barrel, after earlier rising to $62.26, the highest since Jan. 8, 2020.
