BAKU, Azerbaijan, Sept.9
By Leman Zeynalova - Trend:
Oxford Institute of Energy Studies (OIES) forecasts Brent prices at $68.9/b in 2021 and $70.7/b in 2022, Trend reports.
“Absent any downside surprises pertaining mainly to demand side risks, oil prices are still seen holding above $70/b in the remainder of 2021. But as we enter 2022, oil prices are expected to retreat in the mid- $60s before gaining momentum again towards the end of 2022 as the rebound of global demand accelerates, OPEC+ completes the return of its cuts shrinking the spare capacity cushion, while non-OPEC supply growth outside North America remains muted. Throughout 2021 and 2022, oil prices remain confined in the $60/b and $80/b range,” OIES said in its latest report.
Risks to the outlook are fairly balanced in both 2021 and 2022. “On the supply-side the extent of OPEC+ return continues to dictate the balance of risks in both years pressuring the annual prices by - $2.3/b, respectively. On the demand-side, the risks appear fairly balanced to less than -$1/b in both years as concerns over renewed COVID waves leading to a protracted period of intermittent restrictions are confronted by expectations of fast recovery as vaccines continue to roll out.”
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