Oil may rise to $62 per barrel by the end of 2021, as the market's supply of oil is reduced and a deficit looms, Report informs, quoting Head of Commodity Strategy at Saxo Bank Ole Hansen.
The price of Brent oil recently exceeded 50 US dollars per barrel, and in 2021, the growth of quotations will continue, Hansen believes. The trend may be particularly apparent in the second half of 2021, when mass vaccination against coronavirus may begin globally. If the vaccines prove effective, the oil demand may exceed 100 million barrels daily, previously projected for 2020.
"As the world begins to lick its wounds caused by the pandemic, everyone will slowly start to pay attention to the production potential of oil and remember that oil companies have already reduced investment in production by at least 80 billion US dollars. The risk of a potential deficit could spur consumption by the end of 2021, " the expert warns.