I posted yesterday on the research note from BoA on oil:

BoA warn that (bolding mine):

  • "In short, demand is poised to bounce back and supply may not fully keep up, placing OPEC in control of the oil market in 2022"

Outlining 6 reasons for higher prices:

Three demand factors:

  1. pent-up demand to move around, holidays and such, after lockdowns and restricitons
  2. more use of private cars as commuters are slow to return to public transport
  3. more remote work could result in more miles driven "as work-from-home turns into work-from-car"

Two supply factors:

  1. US government policy pressure, and around the world, to curb capex to meet Paris Agreement goals & limit CO2 emissions
  2. investors more vocal about ESG

For the BA forecasts, see that link above.