Bank of America predicted that the recovery of Chinese demand and the decline in crude supplies from Russia would lead to an average oil price of $100 a barrel next year.
According to Arab Net, Bank of America said that oil prices may rise, supported by the shrinking supply of Russian crude in the markets, with the entry into force of sanctions.
Bank of America indicated that there is an 86% chance that China will increase its oil consumption by 1.7 million barrels per day next year.
Bank of America stressed that global oil stocks remain limited, and spare capacity remains very weak.
Oil prices rose today, Tuesday, as the Organization of the Petroleum Exporting Countries and its allies continued to produce less than their quotas, yet prices are heading to decline for the fourth consecutive month before another expected increase in US interest rates, which may limit economic growth and fuel demand.
Brent crude futures for November delivery rose 41 cents, or 0.5%, to $92.41 a barrel.
The price of US West Texas Intermediate crude for October delivery recorded $85.82 a barrel, an increase of nine cents.
Trading in the October contract will expire on Tuesday, and the most active contract for November delivery was $85.53, an increase of 17 cents, or 0.2%.
In an indication of the scarcity of basic supplies, a document from the Organization of the Petroleum Exporting Countries and its allies led by Russia showed that the group known as OPEC + did not reach its oil production goals by a difference of 3.583 million barrels per day in August, which is an estimated 3.5 percent of global oil demand.
Meanwhile, the stalemate in talks to revive the Iran nuclear deal continues to prevent Iranian exports from fully returning to the market.
However, Brent and WTI are heading for their worst quarterly percentage decline since the start of the coronavirus pandemic.
The dollar settled close to a 20-year high against other major currencies, making oil more expensive for holders of other currencies, ahead of decisions expected this week by the Federal Reserve and other central banks.
The US Federal Reserve is likely to raise interest rates on Wednesday by another 75 basis points to curb inflation.
