• 4 minutes Energy Armageddon
  • 6 minutes "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 12 minutes "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 3 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 8 hours Is Europe heading for winter of discontent with extensive gas shortages?
  • 17 hours "False Flag Planted In Nord Stream Pipeline, GFANZ, Gore, Carney, Net Zero, U.S. Banks, Fake Meat, and more" - NEWS in 28 minutes
  • 3 hours ""Green" Energy Is a Scam. It Isn't MEANT to Work." - By James Corbett of The Corbett Report
  • 9 hours Wind droughts
  • 6 days Kazakhstan Is Defying Russia and Has the Support of China. China is Using Russia's Weakness to Expand Its Own Influence.
  • 1 day Xi Is Set To Be Re-Elected As China’s Leader
  • 9 days Oil Prices Fall After Fed Raises Rates
  • 7 hours 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 2 days "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 1 hour Europeans and Americans are beginning to see the results of depending on renewables.
  • 8 hours Australian power prices go insane
  • 11 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Bank Of America Sees $60 Oil Next Summer

Brent crude could hit $60 a barrel by next summer as travel restrictions get eased, Bank of America said, citing growing optimism around Covid-19 vaccines.

The easing of restrictions will lead to a boost in oil demand, the bank said, as quoted by Bloomberg, and this will boost prices as it creates a deficit of 1.6 million bpd by mid-2021.

Vaccine optimism has already pushed oil prices to the highest in eight months despite warnings that it is too early to buy into the vaccine hype, which has this month alone spurred a 25-percent jump in oil prices, according to Bloomberg.

The increasingly likely extension of OPEC+ production cuts has helped prices along, too. The cartel is meeting next week to discuss the extension. According to a forecast by Goldman Sachs, OPEC+ will extend the current cuts of 7.7 million bpd by three months, which would push Brent crude to $47 a barrel.

Interestingly enough, it was Bank of America analysts who last week warned against excessive optimism based on the latest vaccine updates from Pfizer, Moderna, and AstraZeneca.

“We say credit and equity prices (are) to peak in coming months on peak positioning, peak policy, peak profits as optimism tops ahead of vaccine distribution,” they said.

Even so, traders are buying the hype in droves. Even bearish news such as the EIA’s latest weekly update that showed U.S. oil production had risen to 10.9 million bpd and an estimated inventory build reported yesterday by the American Petroleum Institute did not stop the rally. Related: Venezuela Arrests Oil Workers To Cover Up Bad Press About PDVSA

“The fight against the coronavirus is intensifying and is proving to be increasingly successful by the week,” said PVM analyst Tamas Varga, as quoted by the Financial Times. What started as a fear-of-missing-out rally, according to him, has now become a “fundamentally justifiable price rise.”

For Goldman Sachs, the OPEC+ pact carries more weight.

“We continue to view a co-ordinated action to curtail output as the optimal near-term action given the still elevated inventory overhang and with the current wave of infections surprising by its breadth and intensity,” the bank said, as quoted by the FT.

By Irina Slav for Oilprice.com

More Top Reads from Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News