Our supply and demand forecasts suggest 1.3 million barrels per day deficit in 2021 – BofA

In its latest research report, Bank of American (BofA) forecasts Brent and WTI to average $63 and $60 for the calendar year 2021 respectively.

The US bank eyes deficit of 1.3 million barrels per day (bpd) in 2021 while also expecting a surplus of 170,000 bpd in 2022.

BofA expects upbeat energy demand while saying, “global demand will rebound nearly 6mn b/d YoY in 2021 after falling 8.7mn b/d in 2020. During 2021-23, we forecast demand will grow by more than 9mn b/d, the fastest pace since the 1970s.”

On the supply side, the investment bank said, “Non-OPEC supply should grow more than 1 million bpd YoY in 2021 and an additional 2 million bpd in 2022. US supply to grow less than 200,000 bpd in 2021 and more than 1 million bpd in 2022 thanks in part to robust NGL volumes. OPEC supplies are set to rise 800,000 bpd in 2021 and 2.1 million bpd in 2022 and OPEC+ adds back to supply and as Iran returns.”

Also read: WTI recovers from low-$64.00s to mid-$65.00s, but still down on the session