- Analytics
- News and Tools
- Market News
- Rising demand to boost oil prices in the near term - Capital Economics
Rising demand to boost oil prices in the near term - Capital Economics
FXStreet reports that strategists at Capital Economics expect oil prices to rise a little further over the next couple of quarters. A rebound in demand at a time when supply is set to remain relatively constrained should widen the deficit in the global oil market and push the price of Brent up to $75 per barrel by Q3 2021. However, they think prices will then begin to drop back as increasing supply shifts the market into a surplus.
“As vaccines are rolled out and restrictions are lifted, we anticipate a surge in oil consumption. In particular, we think pen-tup demand for travel will mean that oil consumption will exceed pre-pandemic levels in Q3 this year, which underpins our forecast that the price of Brent Oil will peak at this time at around $75 per barrel.”
“The strong increase in oil demand this year will keep the market in a deficit. But rising prices will inevitably incentivise higher supply.”
“Our end-year forecasts for Brent are $70, $60 and $55 per barrel for 2021, 2022 and 2023 respectively.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
