Sumary of Barclays raises oil price view, sees slow grind higher in coming months:
- Article content The oil market’s supply and demand dynamics point to a slow grind higher in prices over the next few months, Barclays said on Thursday, as it raised its 2021 oil price forecasts by $3-5 per barrel.
- Expectations that oil inventories will be tight as economies recover drove oil prices higher on Thursday, with benchmark Brent prices rising to around $72.86 a barrel.
- “Oil prices could rise to $100 per barrel over the coming months if OPEC+ is too slow in bringing back supplies, given the relatively inelastic non-OPEC+ supply response,” Barclays said in a note.
- The British bank sees Brent crude prices averaging $69 per barrel this year, up from $66 previously, and $68 in 2022 on expectation of a larger surplus.
- U.S. West Texas Intermediate (WTI) crude prices are forecast to average $67 a barrel this year, up from $62 previously, and to average $65 next year.