Moody’s predicts brent crude at $65 in 2021

Moody’s says Brent Crude oil prices are likely to stay close to current levels next year, at around $45 a barrel due to uneven demand recovery.

According to the rating agency’s report on its 2021 expectations, oil prices may hover between $45 to $65 a barrel as it expects outlook for next year to be stable with modest gain for prices.

“Modest improvement in 2021 oil prices will not lead producers to boost capital investment, while fuel demand will rise but not to pre-downturn levels,” the rating agency said.

Brent crude hit $50 a barrel on Thursday morning for the first time since oil prices crashed in early March, as hopes of vaccine rollout fuelled bullish expectations of strengthening oil demand early next year.

Likewise, the West Texas Intermediate crude price hit its highest level since the price crash, and traded at $47.23, up by 3.82 per cent on the day.

Vaccine news sent oil prices higher at the end of last month, however, the oilfield services industry would continue to be under more pressure than companies operating in the upstream, midstream, or downstream, the agency added.

Ehime Alex
Ehime Alex
Ehime Alex reports the Capital Market, Energy, and ICT. He is a skilled webmaster and digital media enthusiast.

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