BofA could bring forward $100 oil target in case of a cold winter: Reuters
Bank of America Global Research said it could bring forward its US $100 per barrel oil price target to the next six months from mid-2022 if the winter is colder than usual, Reuters reported.
"We project modest deficits over the coming months that should support oil prices into year-end and beyond," analysts at the bank said in the note.
"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."
A much colder than normal winter could lead global oil demand to surge by 1 to 2 million barrels per day (mbpd), the bank said in a note dated Sept. 10, reported Reuters.
