Oil prices will hold near $80 as the year ends, as tight supplies and higher gas bills encourage a switch to crude for power generation, a Reuters poll showed on Friday.
The survey of 41 analysts and economists forecast benchmark Brent crude to average $70.89 a barrel in 2021, the highest forecast for the year since April 2019.
It falls short of the $100 a barrel level mooted by some producers and forecasters and compares with an average price of $69.52 so far this year. read more
Prices are forecast to average $80.92 a barrel in the fourth quarter this year and $78.74 in the subsequent quarter.
"The main factors affecting oil prices will continue to be related to the energy crunch in Europe and the switching from natural gas to oil derivatives," Matthew Sherwood, Global Economist at the Economist Intelligence Unit, said.
However, that could ease from about the middle of 2022 as the United States responds by pumping more oil, Sherwood added.
The poll forecast U.S. crude at $68.62 per barrel, the highest 2021 forecast since March 2017. West Texas Intermediate was seen averaging $78.06 in the current quarter and at $75.68 in the first quarter of 2022.
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