Oil prices are set for a slow crawl upwards this year as the gradual easing of coronavirus-led restrictions buoy demand, although a second Covid-19 wave could slow the pace of recovery, a Reuters poll showed on Friday.
The survey of 43 analysts and economists forecast benchmark Brent crude to average $41.50 a barrel in 2020, up slightly from the $40.41 consensus in last month’s survey and compared with around $42 average for the benchmark thus far this year. It is expected to average $49.85 in 2021.
The 2020 outlook for West Texas Intermediate rose to $37.51 per barrel from June’s $36.10.
Oil is “caught-up in a step-wise re-balancing process” with the “pieces moving in the right direction” on the supply side, said Harry Tchilinguirian, head of commodity research at BNP Paribas.
