Tuesday 23 February 2021

BofA hikes 2021 Brent price view by $10/bbl on strong oil balances | Reuters

BofA hikes 2021 Brent price view by $10/bbl on strong oil balances | Reuters

Bank of America (BofA) Global Research lifted its forecast for Brent crude oil prices for this year citing tighter supplies due to the Texas freeze and OPEC+ output curbs and unmatched global monetary stimulus, it said in a note dated Monday.

The bank now expects Brent crude oil to average $60 per barrel in 2021, up from a previous estimate of $50. BofA also forecasts West Texas Intermediate (WTI) crude prices to average $57 a barrel this year.

Brent prices could temporarily spike to $70 a barrel in the second quarter of the year, the bank’s analysts said in a note.

Brent crude was up 0.4% at $65.51 a barrel by 1313 GMT, and U.S. crude rose 0.5% to $62.00 a barrel.

Oil prices rose on Tuesday, helped by the likely easing of COVID-19 lockdowns globally, positive economic forecasts and lower output as U.S. supplies were slow to return after the deep freeze in Texas shut down crude production.

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