Investors are pessimistic about oil due to concerns about oversupply in the market next year. However, an analyst at Bank of America Merrill Lynch stated that this pessimistic sentiment has set a "bear trap" for investors. This is because Bank of America believes that if GDP grows as expected, energy demand is likely to increase accordingly.

They pointed out that the recent short positions in the oil market have reached historical highs, as investors are worried that the OPEC+ plan will add more supply to a market already flooded with American oil. However, investors should turn their attention to the artificial intelligence boom and see it as a signal of future demand growth.

Analysts wrote in a report on Monday, "Despite various pessimistic views, we believe that with the arrival of the next round of productivity revolution, global energy consumption may accelerate. It is important to remember that the core of the upcoming battle between artificial intelligence and climate change is energy."

Analysts estimate that with the energy demand for data centers being driven by artificial intelligence in the next round of the "productivity revolution," U.S. electricity demand growth in the next seven years will accelerate from 0.2% to 2%.

With analysts expecting global GDP to grow by 3.3% in 2025, as long as the global economy avoidshard landingor trade wars, energy consumption could increase by 6 million to 9 million barrels of oil per day. This is equivalent to a high global energy demand growth of up to 3%.

Analysts say that the Federal Reserve further easing its policy, lowering interest rates, may significantly boost the global economy in the coming quarters.

They expect the Federal Reserve to lower rates to below 3% by the end of next year, which they say could stimulate demand for oil and cyclical commodities.

In addition, tensions in the Middle East and possible supply disruptions pose upside risks to analysts' oil price forecasts.

As analysts release forecasts for energy demand growth, investors hold a pessimistic view on the energy market. Oil prices have been falling this year, even as concerns about supply disruptions due to Middle East conflicts intensify. After a series of production cuts by OPEC+ in the past two years, attempts are being made to increase crude oil output.

Analysts state that OPEC's supply plans and weak demand in Asia could pose risks to the oil market next year. These factors, along with the possibility of global economic slowdown, present downside risks to analysts' oil price targets. Analysts at Bank of America say,

"Trade wars, the price war of OPEC+, or an economic hard landing could temporarily push oil prices below $60 per barrel. However, a drop to this level could quickly rebalance the oil market and encourage the electrical utilities sector to shift towards oil."