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Two investments banks, Goldman Sachs and Bank of America, have projected the crude oil price to hit between $85 and $100 in the coming months.
The banks’ projection would come as good news for Nigeria despite production output struggles.
In a note published on Friday, Goldman Sachs predicted an $80 per barrel oil price for the last quarter of 2021.
It, however, stressed that the natural gas crunch combined with a colder-than-usual winter in Europe and Asia could pose an upside risk of $5 a barrel to its Q4 price projection.
The investment bank noted that the tightness in global gas supplies creates a clear and potentially meaningful bullish catalyst for the oil market this winter, larger than the downside risk to global oil demand from another Delta-like COVID-19 wave.
“Oil demand could jump by 900,000 barrels per day (bpd) if the coming winter is colder than usual in the northern hemisphere,” it added.
The Bank of America Global Research predicted a higher oil price of $100 per barrel over the next six months.
Its analyst noted that a colder-than-usual winter could be the most important driver of global energy markets in the coming months.
The bank in its note predicted $100 a barrel earlier than its mid-2022 call from June if the winter is colder than normal.
On Friday, oil prices rose to a near three-year high as global output disruptions had forced energy companies to pull large amounts of crude out of inventories.
Brent Crude the benchmark for Nigeria oil was sold at $78.09 a barrel as at the end of Friday’s trade while the United States West Texas Intermediate (WTI) crude was available at $73.98.
