As reported by Yahoo Finance, Bank of America commodities strategist Francisco Blanch said in a research note on Monday he sees a case for $100 a barrel oil next year.
Oil has not traded at $100 per barrel since 2014, when booming U.S. shale production helped global output swamp demand, and prompting major hiring and 6 figure jobs for non experienced workers in areas such as the Permian Basin.
The note suggests that Global oil consumption will continue to outstrip supply through 2022 as the economic recovery boosts fuel consumption further complicated by a lack of investment in new production due to environmental concerns.
Blanch said that "There is plenty of pent-up oil demand ready to be unleashed".
He continued to cite that mass transit will lag, boosting private car usage for a prolonged period of time.
Finally, some pre-pandemic studies show more remote work could actually result in more miles driven, as work-from-home could turn into work-from-car.
Additionally, Oil has maintained its bullish bias while other commodities prices including lumber and copper have somewhat corrected.
Brent has climbed 37% this year to just under US$75 a barrel on mid-Monday, while WTI was just under $74/barrel.