Bank Of America Sees Oil Price Predictions Heading Toward $90 This Year

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

Oil price predictions suggest that prices will surpass $80 per barrel in the second half of this year.

Experts believe this could potentially extend past $90 due to a growing supply deficit, as projected by Francisco Blanch, the head of commodities research at Bank of America. He emphasized that the deficit is expected to deepen over the next six to nine months, supporting the rise in prices. Additionally, analysts in the latest Reuters survey anticipate prices reaching $90 per barrel by the end of this year.

This surge is driven by increasing Chinese demand and a tightening market following OPEC+’s recent production cuts. As demand is set to exceed supply by almost 2 million barrels per day later this year, a further increase in prices is highly likely.

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 keeping up with the latest news, you’re aware that this is fantastic news for the oil industry! And if this is your first time hearing about it, you’ve come to the right place. Get ready because things are about to get really exciting!

Investors are celebrating as oil prices reach unprecedented heights!

Recent forecasts predict an astonishing surge, with prices projected to soar beyond $80 per barrel in the second half of this year. Brace yourself, as experts even suggest that prices could surpass the remarkable milestone of $90!

This phenomenal growth is propelled by a widening supply deficit, which Francisco Blanch, the head of commodities research at Bank of America, expects to deepen over the next six to nine months. This tightening market condition, combined with a surge in Chinese demand and OPEC+’s recent production cuts, presents an exhilarating opportunity for investors. According to the latest Reuters survey, analysts also anticipate a price tag of $90 per barrel by year-end, further reinforcing the prospect of substantial returns.

With demand surpassing supply by nearly 2 million barrels per day, the stage is set for an extraordinary economic boom in the oil industry. Seize this remarkable moment to stay ahead of the competition and capitalize on the promising future of the oil market!

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