Barclays Bank Raises Its Forecast For Oil Prices in 2021 Due to Tight US Supplies

Barclays Bank raised its forecast for the price of oil in 2021, as it indicated a weaker than expected response from US producers to the price increase and the return of stocks to normal after the snowstorm that swept through Texas last week.

The bank raised its forecast for the price of Brent crude in 2021 by seven dollars to 62 dollars a barrel, while it expected an increase in the price of West Texas Intermediate crude by 6 dollars to 58 dollars a barrel.

US energy companies last week cut the number of oil drilling rigs operating for the first time since November as snow swept across most of Texas.

The bank expected the Organization of the Petroleum Exporting Countries (OPEC) and its allies, or a group known as OPEC+, to raise total supplies by 1.5 million barrels per day during Q2 of the year, as well as for Saudi Arabia to reverse its unilateral decision to cut production in April. The group is expected to meet on the fourth of March.