Oil could spike above $100 next year, Bank of America says

Pump jacks operate in front of a drilling rig in an oil field in Midland, Texas.
Nick Oxford | Reuters

Oil could hit $100 per barrel next year as demand outstrips supply, according to Bank of America.

The firm identified three factors on the demand and supply side that should support prices into 2022. Analysts led by Francisco Blanch pointed to pent-up travel demand following more than a year of lockdown, and said that consumers forgoing public transit in favor of private cars will also raise demand for fuel.

Finally, remote work could lead to more miles driven as consumers hit the road without being restricted by in-office work.