BofA: May Set a Target at $100 Per Barrel if Winter Comes Cold

Bank of America said it may advance its $100 oil target to the next six months from mid-2022 if the winter comes colder than usual, potentially driving a rise in demand and a widening supply deficit.

The bank said in a note dated September 10 that the colder winter than usual may lead to a rise in global oil demand by one to two million barrels per day, while the supply deficit will easily exceed two million barrels per day, according to this scenario.

The bank maintained its forecast for the Brent price in the second half of 2021 at $70 a barrel, predicting that prices would move in a narrow range, but said that it expected a Brent price at $75 a barrel by the end of the year with the growth factors.