Oil demand rebound to prevail over potential Iran, India headwinds – Reuters poll
Oil prices will see a gradual uptick this year as economies shake off pandemic blues and weather headwinds from the coronavirus crisis in India and a potential return of Iranian supply, a Reuters poll showed on Tuesday.
The survey of 45 participants forecast Brent would average $64.79 per barrel — the sixth straight upward revision in the 2021 consensus — up slightly from April’s $64.17 projection.
(Graphic: Analysts raise oil price forecasts for 2021 – https://graphics.reuters.com/OIL-PRICES/azgpoomlrpd/chart.png)
The benchmark has averaged $63.52 so far this year. [O/R]
“In the second half of the year, the market threatens to slip into a significant supply deficit as global oil demand should pick up strongly,” Commerzbank analyst Carsten Fritsch said.
Global demand was seen growing 5-7 million barrels per day in 2021.
(Graphic: Global oil demand recovery forecasts remain firm – https://graphics.reuters.com/OIL-PRICES/rlgvddwgxvo/chart.png)
However, concerns remain about shrinking consumption in the world’s third-largest consumer India, reeling from a new COVID-19 wave.