Crude Might Drop 10% If Iran Oil Returns to Market, Blanch Says

Crude prices will probably drop, perhaps as much as 10 percent, if Iranian oil is reintroduced to the world market, Francisco Blanch, head of global commodities and derivatives research for Bank of America Merrill Lynch, said at the Bloomberg Oil & Gas Conference.

“WTI will fall below $100, maybe to the high $90s, and Brent will be at about $105,” he said at the meeting today in Houston. “We’ve seen that a lot of economies out there cannot take spikes in prices from where things are now. Oil prices will stay in this range, and maybe drop off 10 percent if Iranian crude comes back.”