Barclays Raises Its 2020 Oil Price Forecast

On Monday, September 21st, Barclays raised its oil price forecast for 2020 based on possible limited pressure on its demand estimates.

The bank increased its forecast for the price of crude in 2020 for both Brent and US West Texas Intermediate crude by $ 2 to $ 43 and $ 39 a barrel, respectively.

For 2021, the bank expected the average price for Brent and West Texas Intermediate to be $ 53 and $ 50.

The bank said, “We remain conservative regarding oil prices in the coming year as we see a possible limited downward trend in our demand forecasts.”

Due to developments in government and people dealing with the threat of the virus, and in view of the continued restrictions of OPEC +. “

OPEC and its allies said last week that the group intends to take measures regarding member states that have not committed to cutting production to support the market, following the sharp decline in fuel demand due to the Corona virus crisis.

The Organization of the Petroleum Exporting Countries (OPEC) and other producers such as Russia reduce oil production by about 7.7 million barrels per day to support crude prices.