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AlwaysFree: Bank of America Still Positive on Oil Amidst Omicron Variant

Author: SSESSMENTS

Bank of America remains majorly positive regarding oil prices amidst the global fear of the Omicron coronavirus variant.

BOA is still sticking to its USD85/barrel forecast for oil in 2022 with a possibility of a surging past USD100/barrel if air travel rebounds.

The global oil demand is still expected to hit 100.5 million bpd next year. 

Francisco Blanch, the bank’s head of commodities, commented, “The omicron variant of the coronavirus could dislocate the trajectory a bit from recovery but we don’t know how it will play out.”

The bank mentioned some risks in the supply sector aside from Omicron which are the additional releases from the strategic petroleum reserves (SPR) and relaxed sanctions on Iran. 

Blanch added that the US does not intend to go back to previous attempts to stop the spread of the variant and that treatments for the virus are also being rolled out within the upcoming two months.

Tags: AlwaysFree,Americas,Crude Oil,English,US

Published on December 2, 2021 11:54 AM (GMT+8)
Last Updated on December 2, 2021 11:54 AM (GMT+8)