Analysts downgrade 2021 forecast for oil to $70 per barrel, predicting that coronavirus variants may cool demand recovery

Analysts downgrade 2021 forecast for oil to $70 per barrel, predicting that coronavirus variants may cool demand recovery

According to the monthly Reuters poll, $70 per barrel looks to be a more realistic projection for Brent Crude prices for the rest of 2021, rather than the previously predicted $80 per barrel.

The survey of 38 analysts suggests Brent might hover at around $68.76 per barrel – up slightly from June’s $67.48 estimate. So far this year, the global benchmark averaged around $66.57.

“The wax and wane of Covid-19 waves will have more of an influence on sentiment than supply-and-demand fundamentals during the rest of the year, as we do not expect politicians to impose hard and broad-based lockdown measures anymore,” Julius Baer analyst Carsten Menke said, as cited by the agency.

The expert added that oil politics is expected to remain another source of volatility, especially if prices do overshoot this summer, raising the pressure on producers to react.

Earlier, the Organization of the Petroleum Exporting countries and allies (OPEC+) struck another deal to raise oil production by two million barrels per day (bpd) from August till December 2021, after prices hit nearly 2.5-year highs.

“With rising OPEC+ output, a possible comeback of US production in the second half of 2021, and Covid-19 still threatening to cool down oil demand once again, I think $70 is a more realistic level for oil,” LBBW analyst Frank Schallenberger told Reuters.

Although OPEC+ and the International Energy Agency have predicted demand will reach pre-pandemic levels as soon as next year, China and other Asian nations are still imposing restrictive measures against rising coronavirus cases.

Global prices for crude will also be affected by a delay in the return of ‘wildcard’ oil supplies from Iran, which is currently awaiting the lifting of US sanctions.

“It looks likely that Iran will be a 2022 story now, boosting oil market prospects in the near-term but possibly dampening the trajectory in 1H-2022,” said DBS Bank analyst Suvro Sarkar.

For more stories on economy & finance visit RT's business section

Source: www.rt.com

The last notes - Экономика

most read news

#Экономика

The true identity of Bitcoin creator Satoshi Nakamoto, who has been one of the financial world’s enduring mysteries, is still unknown. However, Elon Musk says he might have the answer.Musk says
подробнее...

WEF made the announcement on its website, saying that the current circumstances surrounding the spread of the new variant of coronavirus make it “extremely difficult to deliver a global in-person
подробнее...

Huang Wei, commonly known as Viya, was fined $210 million for failing to declare 2019 taxes amounting to $110 million in 2020, according to the local tax authority. Huang’s social media platform,
подробнее...

The US Energy Information Administration expects the country’s LNG export capacity to reach 11.5 billion cubic feet per day in 2022, which, according to Goldman Sachs, would account for roughly 22% of
подробнее...

The company said on the website of the US Food and Drug Administration that it had begun a full review of its aerosol products under the Aussie, Herbal Essences, Pantene and Waterless brands.
подробнее...

According to the complaint, in June 2019 Armstrong offered financial backing to Knowledgr, a platform used to distribute scientific papers with tokens offered as an incentive. He also promised the
подробнее...

The “Transformation” scenario of Russia’s second-largest producer behind Rosneft assumes an aggressive phase-out of oil and gas and the most efficient and rapid development of renewable energy and
подробнее...

European prices for natural gas exceeded $2,150 per 1,000 cubic meters on Tuesday for the first time in history, according to Intercontinental Exchange’s London clearing house. The price at the Dutch
подробнее...

“McDonald’s Japan will temporarily limit sales of medium- and large-sized french fries as a proactive measure to ensure customers can continue to enjoy McDonald’s french fries,” the company told the
подробнее...

According to regulatory filings, the billionaire has sold around 13.5 million shares for about $14.1 billion since November 6, when he pledged to sell a 10% stake in Tesla to exercise his stock
подробнее...

According to the institute’s vice director, Song Yuntao, the experiment is aimed at upgrading the EAST auxiliary heating system to make the artificial sun “hotter” and more “durable.” The testing is
подробнее...

According to the safety regulator, the Passenger Play function on Tesla vehicles sold since 2017 “may distract the driver and increase the risk of a crash.” The investigation is looking into 580,000
подробнее...

On Tuesday, the lira strengthened by more than 10% to trade around 12 lira versus the US currency, after gaining 23% on Monday, and recovering from a record low of nearly 18.4 per dollar touched
подробнее...

The January futures on the title transfer facility hub in the Netherlands traded at $2,120 per 1,000 cubic meters, marking a 23% increase from Monday. On Tuesday, Russian gas exporter Gazprom halted
подробнее...

In the UK, for instance, some of the most sought-after items are being sold online with mark-ups of more than 70% while being out of stock in official stores. Gadgets such as game consoles, iPads, and
подробнее...

In a joint letter to US Transportation Secretary Pete Buttigieg, the bosses of the two companies warned that “5G interference could adversely affect the ability of aircraft to safely operate.”The
подробнее...

As part of the nation’s nuclear phaseout, Berlin will shut down its Grohnde, Gundremmingen C, and Brokdorf plants, leaving only three reactors that will also be taken offline by the end of next
подробнее...

According to Jarod Koopman, the director of the Internal Revenue Service’s cybercrime unit, the government has acquired record amounts of crypto in recent years.“In fiscal year 2019, we had about
подробнее...