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.
KEEPING THE ENERGY INDUSTRY CONNECTED
Subscribe to our newsletter and get the best of Energy Connects directly to your inbox each week.
By subscribing, you agree to the processing of your personal data by dmg events as described in the Privacy Policy.
More oil news
China’s Weak Winter LNG Demand Provides Relief for Rival Buyers
Oil Edges Higher Ahead of US Inflation Figures and OPEC Report
Oil Slips as Glut Outlook Outweighs Optimism on China Stimulus
Oil Edges Higher as Traders Weigh Fallout From Syrian Upheaval
China’s Solar Industry Looks to OPEC for Guide to Survival
Five Key Charts to Watch in Global Commodity Markets This Week
Oil Steadies as OPEC+ Opts Again to Delay Plan to Restore Output
NMDC LTS to acquire 70% equity stake in Emdad
Oil Holds Drop as OPEC+ Decision on Supply Takes the Spotlight
