Bank of America says oil may hit $100/barrel in next 6 months

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Bank of America Global Research said it could bring forward its $100 per barrel oil price target to the next six months from mid-2022, if the winter is colder than usual, Reuters reported.

Cold weather potentially drives a surge in demand and widens supply deficit, the bank explained in a note.

A colder than normal winter could lead global oil demand to surge by 1-2 million barrels per day (bpd), with the winter supply shortfall easily exceeding 2 million bpd in such a scenario.

The bank reiterated its Brent price forecast for H2 2021 at $70 a barrel, predicting range-bound prices, and expected it to reach $75/bbl by year-end.

The bank forecasts modest deficit over the coming months that should support oil prices through 2021 and beyond, the bank analysts indicated.