Bank of America maintains its forecast of US $ 85 per barrel for the price of oil in 2022, with possible increases above US $ 100 if air travel recovers.
The omicron variant of the coronavirus could “shift the trajectory of the recovery a bit, but we don’t know how it will play out,” Francisco Blanch, the bank’s chief commodity chief, said in a presentation.
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Blanch also noted that the US does not intend to revert to measures previously taken to halt the spread of the variant and that, furthermore, treatments for the virus will be rolled out in the next two months.
The bank expects oil demand to reach 100.5 million barrels per day next year. Still, potential risks to oil prices, in addition to omicron, include more releases of strategic reserves and the removal of sanctions on Iran.
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