Bank of America: Brent crude prices could still reach $150 per barrel

Bank of America (32.
31, 0.
23, 0.
72%) Global Research said in a new report sent to U.
S.
Drilling on June 23, 2022 that oil prices could still reach $
150 per barrel, according to a new report sent to U.
S.
drilling websites this week.

In the report, Bank of America Global Research noted that Brent crude is expected to average $102 per barrel this year and in 2023, and stressed that if European sanctions force major oil Nissan (8.
18, 0.
02, 0.
25%) to fall below 9 million barrels, Brent crude prices could soar to $150 per barrel
.

Bank of America Global Research said in the report: "However, because forward oil prices have been firmly fixed in the long-term oil price range of $60 to $80 per barrel, the market does not seem to believe that the supply crisis will last for 10 years
.
" ”

"Therefore, extending sanctions on energy could serve as a price bottom, even as the risk of a near-term decline in spot oil prices increases
.
" Even if the world falls into recession, we estimate that the average price of Brent crude oil may exceed $
75 per barrel in 2023.
Bank of America Global Research added
.

In the report, Bank of America Global Research noted that it still assumes no recession, but added that economic growth is constrained by limited energy production, fuel prices are rising, and central banks are raising interest rates to slow growth in the overall economy
.

"Rising inflationary pressures in areas ranging from food to energy to services, combined with rapid interest rate hikes, suggest that oil demand will not fully return to pre-pandemic levels
until next year," Bank of America Global Research said in the report.
”

"The geopolitical conflict behind today's massive refinery bottleneck is paving the way
for a huge US energy (SPR release, export restrictions), US external (visit to Saudi Arabia) and US monetary (75 basis point rate hike) policy response," Bank of America Global Research added.
”

"How will the destruction of oil demand end? Given the strength of the dollar, large energy importers such as India, Turkey, South Africa, Japan, Germany or Spain face the greatest risk
of shrinking demand.
Bank of America Global Research continued in the report
.

Bank of America Global Research said in a report that if the daily supply of oil from major countries does not fall below 10 million barrels, global oil demand may increase by 1.
7 million barrels
per day in 2023.
According to the production table of the latest OPEC+ meeting statement published on the OPEC website on June 2, the "required crude oil production per day" of 10.
83 million barrels
per day in July this year.

At the time of writing, Brent crude oil is trading at $
109.
11 per barrel.
The commodity's highest closing price of $127.
98 a barrel so far this year came on March 8
.