Analysts at Fitch Solutions Country Risk and Industry Research (Fitch Solutions) have increased their forecast for the price of Brent crude oil in 2020, a new report by the company has revealed.
The analysts now expect Brent to average $40 per barrel this year, compared to their previous 2020 forecast of $33 per barrel. Fitch Solutions analysts also see Brent rising further to $49 per barrel in 2021, according to the company’s latest report. This marks a $7 per barrel increased compared to their previous projection of $42 per barrel for next year.
Looking further ahead, Fitch Solutions analysts now anticipate that Brent will increase to $55 per barrel in 2022, $60 per barrel in 2023 and $63 per barrel in 2024.
The Bloomberg Consensus for Brent, which was also highlighted in the report and which Fitch Solutions is a contributor to, sees Brent averaging $39 per barrel this year, $50 per barrel in 2021, $55 per barrel in 2022, $60 per barrel in 2023 and $64 per barrel in 2024.
“Compliance with the OPEC+ production cut deal has outpaced our expectations, while demand appears to have passed its nadir,” the Fitch Solutions analysts stated in the report, which was sent to Rigzone on June 1.
“Continued production restraint by OPEC+, steep declines in non-OPEC supply and rising oil demand will support further price strength over the second half of 2020 and 2021,” the analysts added.
“However, bloated crude and product inventories, the unwinding of the cut deal and the long road to economic recovery will somewhat cap the upside,” the analysts continued.
Last month, the U.S. Energy Information Administration raised its average Brent spot price forecast to $34.13 in 2020 and $47.81 in 2021. The EIA previously expected Brent spot prices to average $33.04 in 2020 and $45.62 in 2021.
To contact the author, email andreas.exarheas@rigzone.com
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