. Citing an improving global economic outlook and tightening inventories, Bank of America is sees Brent crude averaging $86 per barrel, up from its earlier forecast of $80, and the U.S. crude oil benchmark, West Texas Intermediate WTI, averaging $81 per barrel, up from its previous forecast of $75 per barrel. The predicted summer peak of $95 for Brent is hinged on expectations for a summer driving season against the backdrop of tighter-than-expected supply.
On the geopolitical front, BoA is focusing on rising tensions between the U.S. and Iran, Russia and Venezuela, as well as the ongoing Houthi attacks on the Red Sea shipping route and Ukrainian targeting of Russian refineries. On the U.S. domestic front, BoA is watching American shale production, which it says is slowing. The bank also said that OPEC output cuts have prompted speculators to pour large amounts of investment dollars into oil.