Oil will rise as demand recovery resumes, but virus risks remain: Reuters poll

Oil will rise as demand recovery resumes, but virus risks remain: Reuters poll ...

  • Summary
  • In 2021, demand growth was seen at 5-6 mbpd, in 2022, at 3.5-5 p.m. in the 2020s, with demand rise ranging from 5 to 6 mmbq to 5 meter. In the year 2023, the demand was risen by 5-5 degrees.
  • OPEC+ will be cautious in adding barrels, according to an analyst.
  • Click on a table of crude price predictions to see more.

On Thursday, a Reuters poll stated that oil prices will see modest gains for the rest of the year and into 2022 as consumption resumes its recovery to pre-pandemic levels, with savorably extending COVID-19 resurgence still looming large over the forecast, according to rumors from NBC.

Brent would average $68.87 per barrel in 2021, up from the $68.02 consensus in August, when the Delta variant's spread caused the first downward revision in the 2022 outlook in about nine months, according to the survey of 39 participants.

Goldman Sachs recently raised its year-end Brent forecast to $90, but cited a possible new virus variant and obstructive production ramp-up as dangers, citing slowed fuel demand and storm-led Gulf of Mexico supply issues. read more

"Demand growth will continue to support oil prices, balancing by the anticipated rise in OPEC+ production between now and the end-2021," Ann-Louise Hittle, vice president, oil research at WoodMac, said.

Brent has averaged about $68 this year, but it topped $80 per barrel this week, owing to rising demand and expectations that producers will decide to keep supplies tight when the Organization of the Petroleum Exporting Countries meets next week.

"OPEC+ will be cautious when adding barrels, but it does not want prices to rise below $80 for a sustained period of time in part because of concerns about the impact on the sustainability of the economic recovery and the long-term impact upon demand," said John Paisie, president of Stratas Advisors.

"They're still worried about US shale producers ramping up production," Paisie explained.

According to Julius Baer analyst Norbert Rcker, "occasional pandemic hiccups" increased level of uncertainty, while growth rates should slow as economic activities return to pre-pandema levels.

In 2021, crude in the United States averaged $66.13 per barrel, up from $65.63 last month, according to the poll.

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