Barclays said it is remaining bullish on crude oil prices for next year on the assumption that the rollout of COVID vaccines will ease impacts of the pandemic, thus driving a recovery in economic activity and oil demand.
The bank’s analysts pitch their above consensus Brent crude forecast at around US$53 per barrel, current price cUS$45.72.
At the same time, Barclays sees the West Texas Intermediary (WTI) crude at US$50 per barrel in 2021.
Away from the pandemic factors, meanwhile, OPEC and Russia are speculated to be close to postponing an envisaged hike in crude production quotas. A 2mln barrel per day rise was slated for January and it is suggested that it could move out three months.
Today, Brent crude is up around 1.8% changing hands at US$45.77 per barrel whilst WTI was 1.6% higher at US$43.10.