Crude oil demand is likely to rebound next year following the promising news about a vaccine against the novel coronavirus, according to Fitch Solutions . . . For next year, Fitch expects Brent crude to average $48 a barrel, rising to $50 a barrel in 2022.
Reuters (Dec 31) reports:
The poll of 39 economists and analysts conducted in the second half of December forecast Brent crude prices would average $50.67 per barrel next year.. . . Oil demand recovery will depend on the pace of deployment of the vaccines being developed to combat the virus, analysts said, with some expecting no return to pre-pandemic levels before late 2022 or 2023.
“New virus strains might complicate the outlook and lead to harsher lockdowns that will cripple the crude demand outlook for the first quarter,” Edward Moya, senior market analyst at OANDA, said.
Reuters has oil prices in 2021 at $50.67 while Fitch Solutions has a target of $48.
There have been news accounts regarding virus strains since early in this pandemic. I wrote about a couple such strains here (Jun 23) and here (Nov 28). It is always important to keep an eye on such virus strains, but let's hope there is an over-hype on these recent new strains that have popped up across the globe.
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