Thursday 30 September 2021

Oil to gain as demand recovery resumes, but virus risks remain: Reuters poll | Reuters

Oil to gain as demand recovery resumes, but virus risks remain: Reuters poll | Reuters

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 a likely COVID-19 resurgence still looming large over the outlook, a Reuters poll showed on Thursday.

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

Citing a faster fuel demand recovery and storm-led Gulf of Mexico supply disruptions, Goldman Sachs recently hiked its year-end Brent forecast to $90, but flagged a potential new virus variant and a ramp-up in OPEC+ production as risks. read more

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

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




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