Oil prices appear to be finding some support Wednesday morning after dropping more than 9% since the start of the year; however, analysts at Bank of America Merrill Lynch expect prices to decline in the first quarter of 2015. “Investor index buying could provide some support in the next weeks, but physical oil supply is still outpacing demand. The term structure of oil continues to weaken and inventories keep piling up,” the analysts say. The bank adds that there are three scenarios that could shift the current down trend: decreased supply from non-OPEC nations, decreased output from OPEC or stronger global demand; however “at the moment, none of these seem to be materializing.” As of 10:35 a.m. EST, West Texas Intermediate crude oil was trading at $48.32 per barrel, up 39 cents or 0.81% on the day.
