Bank of America Shared Its Oil Price Forecast

Bank of America shared its oil price forecast. The agency predicted oil could be $100 a barrel next year.

Bank of America predicted that oil prices could reach $100 a barrel next year as a result of the recovery in travel demand. Bank of America, in a research report it published, stated that global oil consumption will continue to be more than production with the economic recovery, and pointed out that investments in new production have decreased due to environmental concerns. Francisco Blanch, Head of Commodities Research at Bank of America, said, "There's a lot of pending demand ready to come out." Other institutions, such as the Trafigura Group or Goldman Sachs, also predicted that oil could hit $100 under the right circumstances, but Bank of America was the first institution to give a significant date so far. If crude oil prices reach triple digits again, it will be the first time since 2014. Crude oil, which was largely around $100 a barrel until 2014 after the global financial crisis, never saw these levels again after the increase in shale oil production in the USA. The weather, which has started to improve in the oil markets, stands out as a factor that puts pressure on OPEC+ countries to increase production.