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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. ....
At the beginning of January, OPEC+ announced the details of the latest agreement between the world’s largest oil producers. Saudi Arabia is set to reduce its production by an additional million bpd, while Russia is going to slightly increase output. The global oil market is resting on an uncertain truce between Russia and Saudi Arabia, says Times Now adding that the deal was stitched together after some discomfort, and the peace between the two countries seems fragile. In March 2020, Riyadh and Moscow were locked in a historic showdown, which wiped oil prices out by two-thirds at the peak of their sparring. ....