Bank of America believes oil could spike above $100 before this cycle plays out

The sun is seen behind a crude oil pump jack in the Permian Basin in Loving County, Texas.
Angus Mordant | Reuters

Oil prices are up around 80% over the last year amid a recovery in demand and record production cuts from producers, and Bank of America says the rally isn't slowing down anytime soon.

The firm said Friday that oil can climb all the way to $100 per barrel "before this story plays out." Underpinning Bank of America's bullish outlook is accelerating demand and the "risk that a supply/demand imbalance skews quickly towards a tighter market."