Article content

Oil prices are experiencing a “double dip” and could extend losses as the supply glut persists for another 18 months, according to Bank of America Corp.

We apologize, but this video has failed to load.

tap here to see other videos from our team. Try refreshing your browser, or Oil market is in the dreaded 'double dip' so brace for more losses to come, warns Bank of America Back to video

‘The price plunge has wounded Canada’s oil patch. Now the questions are: When will it be fixed and what happens to the sector then?





[/np_storybar]

Risks to growth in China, the prospect of increased Iranian exports after this month’s nuclear deal and a strengthening dollar “could continue to press oil lower,” the bank said in a note dated July 24. Bank of America cut its third-quarter estimate for Brent to US$50 a barrel from US$54, while West Texas Intermediate was lowered to US$45 from US$50.

Brent and WTI returned to bear markets in the past week after falling 20 per cent from peaks reached in June, as a plunge in China’s stock market sparked concern that oil demand in the world’s second-largest economy will falter. Brent traded close to US$53 a barrel on Tuesday and WTI near US$47.