Barclays raises oil price outlook, expects limited downside to demand view

For 2021, the bank expects Brent and WTI prices to average $53 and $50 per barrel, respectively.

(Reuters) - Barclays Commodities Research on Monday raised its oil price forecasts for 2020, citing limited potential downside to its demand outlook.

The bank raised its 2020 Brent and U.S. West Texas Intermediate (WTI) price forecasts by $2 to $43 per barrel and $39, respectively.

For 2021, the bank expects Brent and WTI prices to average $53 and $50 per barrel, respectively.

"We remain constructive on oil prices for next year as we see limited potential downside to our demand outlook, primarily due to the evolving response function of governments as well as the general public towards the virus threat and continued OPEC+ restraint," Barclays said.

Last week, OPEC and its allies said the group would take action on members that are not complying with deep output cuts to support the market following a coronavirus-led slump in fuel demand.

The Organization of the Petroleum Exporting Countries (OPEC) and other producers, such as Russia, are cutting output to the tune of 7.7 million barrels a day to support oil prices.

Brent was trading at $42.97 per barrel and WTI at $40.94 a barrel.

Oil prices edged higher on Monday as a tropical storm took aim for the U.S. Gulf of Mexico region halting some production, though price gains were capped by the potential return of oil output in Libya and a continued rise in coronavirus cases. [O/R]

 

 

(Reporting by Anjishnu Mondal in Bengaluru; Editing by Rashmi Aich)


(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)


Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel