US Faces Challenging Summer Gas Season, BofA’s Blanch Says
Speakers
Francisco Blanch
— Head of Global Commodities and Derivatives Research, Bank of America
Summary
Francisco Blanch of Bank of America discusses a large global oil deficit of 14-15 million barrels per day, expecting higher prices and potential availability issues during the US summer driving season. He highlights that Asia is experiencing inventory strain while the Atlantic region has not yet felt the pain. The Strait of Hormuz situation remains a key variable.
- Blanch expects a challenging summer gas season in the US with higher prices and availability issues.
- Global oil market deficit is around 14-15 million barrels per day, 15% below stabilization level.
- Peak summer demand will likely widen the deficit.
- Asia (India, Japan) is experiencing inventory stress, while Europe and US have not yet.
- Strait of Hormuz reopening is uncertain and could impact supply.
- Signs of goodwill from China on agricultural trade could provide market relief.
Trade Ideas
Large oil deficit supports higher prices.
The global oil market is running a significant deficit of 14-15 million barrels per day, which is 15% below the level needed for prices to stabilize at $60-70/bbl. This deficit is expected to widen as peak summer demand approaches, leading to higher gas prices and potential availability issues in the US. The supply-demand imbalance supports higher oil prices.
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This Bloomberg Markets video, published May 18, 2026, features Francisco Blanch discussing WTI. 1 trade idea extracted by AI with direction and confidence scoring.
Speakers: Francisco Blanch · Tickers: WTI