Photo: CGP Grey
At the end of 2020, oil markets perked up fuelled by the news on vaccine approvals, but this month, their optimism has faltered due to the persistent spread of the virus. Nonetheless, most analysts consider that demand for crude will recover in the second half of the year.
Despite COVID-19’s recent resurgence in several countries, analysts expect a recovery in oil demand and prices this year, says S&P Global Platts adding that oil markets are watching a tug of war between the virus and vaccine deployment. According to Goldman Sachs, Brent crude may rise to $65 per barrel by the middle of 2021, which is six months earlier compared to their previous forecast. UBS Group has also revised its forecast for Brent upwards to $60 per barrel by mid-2021.