Crude oil prices has started the week with slight bearishness, the last five weeks saw gains one after the other and on Friday it was trading around USD 50 per barrel mark. So some profit taking and this in reaction of the US jobs data on Friday that came in on the weaker side.
On demand Dr. Kang Wu - Head of Analytics, Asia at S&P Global Platts said, “There are more than one positive news for investors, OPEC plus has agreed production cuts is one and vaccine development is another. Fundamentally, in a short term right now we are not improving a great deal, demand is still weak, not only seasonally, but also because of the escalation of COVID-19 cases. So on a ground fundamentally demand is a concern.”
“But over the longer term like over 6 months, we are positive impact after vaccine development so that will improve the overall improvement and control of COVID-19 so expecting demand to improve in next 6 months.”
On pricing he said, “We are looking at early USD 50 per barrel for Brent by the end of 2021. In early next year, we still see it lingering between that USD 40-45 for the first half and then moving towards above USD 50 per barrel by the end of the year.”
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