Oil
BreakingOil & GasTop StoryTrending Story

Bank of America Says Oil Prices Could Climb Above $100

294

 

The price of oil could hit $100 per barrel over the next six months If winter temperatures in the northern hemisphere turn out to be below seasonal norms.

Oil demand would spike and could lead to oil shooting up to the $100 mark, Bank of America Global Research said.

BofA Global Research said in June that expectations of a strong demand recovery that outpaces supply in the coming months could lead to oil prices briefly hitting $100 per barrel in 2022.

“We believe that the robust global oil demand recovery will outpace supply growth over the next 18 months, further draining inventories and setting the stage for higher oil prices,” analysts at BofA wrote in June, in which they significantly raised their price forecasts for next year’s average Brent Crude prices.

Nearly three months later, BofA still sees the upside for oil prices amid modest market deficits in the next few months. It also sees potential for oil to hit $100 a barrel earlier than its mid-2022 call in June if the winter is colder than normal.

In the latest note, Bank of America analysts wrote:

“Downside risks include a new COVID-19 wave, taper tantrum, a China debt crisis, and the return of Iranian crude barrels. Having said all of that, winter weather risk is quickly becoming the most important driver of energy markets.”

Leave a comment

Related Articles

Correcting the Lies in Dr. Olisa Agbakoba’s Assertions

By Kingsley Ariamaodo Eminent lawyer and Senior Advocate of Nigeria, Dr. Olisa...

I’m concerned about Nigerian workers, committed to just, realistic minimum wage- Tinubu

As the nation’s driving force, President Bola Tinubu says Nigerian workers deserve...

Minimum wage: Tinubu’s meeting with labour deadlocked as labour insists on N250,000

The closed-door meeting between President Bola Tinubu and labor leaders over the...

Just In: Pres. Tinubu, Labour Leaders In Closed-Door Meeting Over Minimum Wage

President Bola Tinubu and the leadership of the organized labour in the...

Breaking: Supreme Court grants local governments financial autonomy 

The Supreme Court ruled on Thursday that it is unconstitutional for state...

Breaking: Nigeria’s crude oil production in June rises to 1.27m barrels daily- OPEC

Barely a week after the Nigerian National Petroleum Company Limited (NNPC Ltd)...

Just In: Pres. Tinubu invites labour for minimum wage talks

President Bola Tinubu has invited the organized labour, under the aegis of...

Breaking: Pres. Tinubu sets up ministry to address farmer-herder crisis

President Bola Tinubu has announced the creation of the Ministry of Livestock...

NNPC retail outlets extend hours of operation to ease tightness of fuel

The Nigerian National Petroleum Company Limited (NNPC Ltd) has announced that all...

Nigeria’s debt level of N121.67trn remains within safe limits, says DMO

In spite of the increase in Nigeria’s total debt stock from N97.34...

Navy uncovers two illegal crude oil refining sites in Delta State

The Nigerian Navy Ship (NNS) Delta, has uncovered two illegal refining sites...

Breaking: Pres. Tinubu gets second term as ECOWAS chairman

The ECOWAS Authority of Heads of States and Government has re-elected President...

CJN swears in daughter-in-law, Wike’s daughter, 10 other new FCT High Court judges July 10

The Chief Justice of Nigeria (CJN), Justice Olukayode Ariwoola, will, on Wednesday,...

As food crisis persists, 82 million Nigerians may face severe hunger, says UN

Amid food insecurity in Nigeria, the Food and Agriculture Organization (FAO), an...

NNPC/SPDC JV is committed to impacting lives through sustainable development projects

The Nigerian National Petroleum Company Ltd. (NNPC Ltd.) and Shell Petroleum Development...

Updated: Tinubu inaugurates Presidential Economic Coordination Council, announces 2m bpd benchmark in few months

President Bola Tinubu on Thursday inaugurated the Presidential Economic Coordination Council (PECC)...

Samoa agreement will not harm Nigerian interests, FG assures

Minister of Information Mohammed Idris has given assurances that President Bola Tinubu...

Labour Party in landslide victory as Sunak concedes defeat in UK polls

Labour has won the UK general election and is heading for a...

Nigeria’s CNG journey has begun, and it’s irreversible, says Kyari

The Group Chief Executive Officer of NNPC Limited, Mallam Mele Kyari, has...