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Oil prices are expected to witness a gradual increase this year as economies shake off the economic effects of the COVID-19 pandemic, Reuters reported, citing its recent survey.
The survey of 45 participants forecast Brent crude would average $64.79 per barrel this year -- the sixth straight upward revision in the 2021 consensus -- up slightly from April’s $64.17 projection.
Global demand was seen growing 5-7 million barrels per day in 2021.
In the second half of the year, the market may slip into a significant supply deficit as global oil demand should pick up strongly, Commerzbank analyst Carsten Fritsch was quoted as saying.
However, concerns remain about shrinking consumption in India, the world’s third-largest consumer, which is reeling from a new COVID-19 wave, the report said.
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