Barclays Raises Its 2021 Oil Price Forecast

Barclays Bank raised its forecast for oil prices in 2021, driven by “temporary factors” such as improved demand for fuel in winter due to cold weather, especially in Asia, and a weak dollar.

The bank maintained its optimistic forecast of oil prices in the second half of the year, but said that the emergence of risks resulting from the increase in cases of Coronavirus in China and the disappearance of such temporary factors, may lead to a decline in prices in the near term.

The Bank of England said it raised its price forecast by $ 2 a barrel on average for this year. The bank expects the price of US West Texas Intermediate crude to average $ 52 per barrel and Brent crude to $ 55 per barrel.

Fears about re-imposing general isolation measures to combat Covid-19 pushed Brent down eight cents, equivalent to 0.1 percent, to $ 55.38 a barrel, while US West Texas Intermediate crude fell to $ 52.26 a barrel today.