Due to concerns about market oversupply next year, investors are increasingly bearish on the oil market. However, analysts from Bank of America point out that the pessimistic sentiment is setting up a "bear trap" for investors. This is because if global GDP grows as expected, energy demand may also increase. The term "bear trap" refers to the dilemma faced by short sellers when the bear market reverses.

Analysts note that as investors begin to worry about the OPEC+ plan to increase supply to a market already flooded with American oil, short positions in the oil market have recently reached near-record levels. However, investors should view the artificial intelligence boom as a signal of future demand growth.

In a report on Monday, they wrote: "Despite bearish concerns, we believe that global energy consumption may accelerate with the arrival of the next productivity revolution."

They added, "It is important to remember that the upcoming clash between artificial intelligence and climate change will revolve around energy."

Analysts at Bank of America estimate that as demand for artificial intelligence-driven data centers becomes part of the next "industrial revolution", American electric power demand growth will accelerate from 0.2% to 2% over the next seven years.

Analysts expect global GDP to grow by 3.3% in 2025, as long as the global economy avoidshard landingIn the event of a trade war, energy consumption may increase by 6 to 9 million barrels of oil per day. This is equivalent to a 3% increase in global energy demand.

Analysts suggest that the Federal Reserve's further relaxation of policy by lowering interest rates may also help significantly boost the world economy "quite substantially" in the coming quarters. They expect the Federal Reserve to lower rates to below 3% by the end of next year and believe this could stimulate demand for oil and cyclical commodities.

With the escalation of tension in the Middle East, unexpected changes in oil supply may pose upside risks to analysts' price forecasts.

As Bank of America predicts an increase in energy demand, investors have turned to put energy. Despite growing concerns about supply disruptions due to the conflict in the Middle East, energy prices are still falling this year.

Meanwhile, after a series of production cuts over the past two years, OPEC+ plans to increase supply to the currently oversupplied oil market.

Analysts suggest that OPEC+'s plan to restore supply and weak demand in Asia may bring risks to the oil market next year. These factors, along with the possibility of global economic slowdown, pose downward risks to their oil price targets.

Analysts wrote: "A trade war, OPEC+ price war, or an economic hard landing could temporarily push oil prices below $60/barrel. However, reaching this level could quickly drive the oil market towards balance and stimulate alternative demand in the power generation sector."