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Goldman Sachs, Bank of America project oil price near $100 on winter demand

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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.

READ ALSO: Oil price jumps 3.5% after touching its lowest

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.

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