Bank Of America Sees Oil Prices Heading Toward $90 This Year

by | May 24, 2023 | Bank of America, Bloomberg, News, Oil Prices, OPEC

Oil prices will return to above $80 per barrel in the second half of this year and could continue rising toward $90 due to a deepening supply deficit.

From OilPrice.com:

Oil price is predicted will return to above $80 per barrel in the second half of this year and could continue rising toward $90 due to a deepening supply deficit, Francisco Blanch, head of commodities research at Bank of America, told Bloomberg Television on Friday.

“We’ll get back up over $80 in the second half of the year, toward $90, because the deficit is going to get deeper over the course of the next six to nine months,” BofA’s head of commodities research added.

Analysts in the latest monthly Reuters survey also see prices rising toward $90 per barrel by the end of this year, driven by Chinese demand and a tightening market following OPEC+’s latest production cuts.
Later this year when demand is set to exceed supply by nearly 2 million barrels per day (bpd), it’s expected we will see prices increase.

“The current market pessimism, however, stands in stark contrast to the tighter market balances we anticipate in the second half of the year, when demand is expected to eclipse supply by almost 2 mb/d,” IEA said in its monthly report.

If you’ve been following the headlines, you know that this is great news for oil! If this is the first time you’re hearing about this, you’re in the right place.

Stay tuned because things are getting exciting!

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