IMF Forecasts 21% Rebound In Crude Oil Prices For 2021 To Just Above $50/B
The IMF forecasts oil prices to average just above $50 per barrel in 2021, which would be 21% above the 2021 average for the year as the price recovery comes from the roll out of vaccines and potential recovery of many global economies. The IMF uses a simple average of prices of Brent, Dubai and WTI to calculate its oil prices. With that methodology, the IMF said oil prices averaged $41.29/b in 2020 and would rise to $50.03/b in 2021, before falling back to $48.82/b in 2022. (S&P Global Platts)
Growing Concerns Over COVID-19 Leaves Market Participants Cautious In Short Term. At the risk of sounding like a broken record, increasing cases of the coronavirus is leaving the oil market in limbo as the case count rises in key countries such as China- who have been the shining light of oil demand in recent years. Vaccine roll outs in the UK have provided positive news for a light at the end of the tunnel, but the lock downs are likely to persist at least to the end of February.