Financial Post | Business

Bank of America Corp. repeated its forecast that U.S. crude futures may temporarily collapse to $50 a barrel in the next 24 months because of surging oil production in North America.

The U.S. and Canada will increase output by 880,000 barrels a day this year, accounting for all of the supply growth outside the Organization of Petroleum Exporting Countries in 2013, the bank said in an e-mailed report. While West Texas Intermediate, trading at about $95 a barrel today, will average $90 this year, prices may plunge by almost 50% within two years because of the output boom, it said.

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