Bank of America Remains Bullish on Oil

In a note out this morning titled "Living in an $80 world" Bank of America analyst Douglas Becker continues to call for $98 barrel Brent and $90 barrel WTI, a meaningful increase from current levels of and $82.50 and $77.40. In the note, Mr. Becker goes on to talk about Oil Service stocks, noting that he is "Still expecting a U-shaped recovery. “Gut checks” in the oil services sector are not unusual. In fact, Brent crude oil prices have had at least an 18% pullback in each of the last three years, although only once dipping below $90/bbl, and then only briefly." Some other insights include; -Focus on subsea equipment -Frac sand supply-demand tenuous with lower oil prices -US rig count could decline 150 rigs assuming $80 WTI -Offshore drillers still our least favorite subsector Shares of Oil Services ETF

closed at 44.55 yesterday, still down nearly 9 percent year to date.