Global Crude oil prices to average at $49/barrel in 2021 on rising oil demand, restrained OPEC+ output: EIA report

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Biznextindia : Global Crude oil prices to average at USD 49 per barrel in 2021 due to rising global oil demand and restrained OPEC+ oil production, forecasted US based energy information Administration (EIA).

In its short term energy outlook report, EIA has predicted that Brent prices will average USD 47/b in the first quarter of 2021 and rise to an average of USD 50/b by the fourth quarter. Overall the average prices will be at USD49 per barrel.

“.. Brent prices will average $49/b in 2021, up from an expected average of $43/b in the fourth quarter of 2020. The forecast for higher crude oil prices next year reflects EIA’s expectation that while inventories will remain high, they will decline with rising global oil demand and restrained OPEC+ oil production” said EIA in its report.

On Thursday, Brent Crude prices  rose by 0.49 per cent to USD 49.10 per barrel, WTI crude is up 0.57 per cent to Rs.45.79.

However, EIA expects high global oil inventory levels and surplus crude oil production capacity will limit upward pressure on oil prices through much of 2021.

EIA has forecasted that OPEC crude oil production will average 27.5 million barrels per day (b/d) in 2021, up from an estimated 25.6 million b/d in 2020. The increase reflects OPEC’s announced potential increases to production targets and production increases in Libya.

Meanwhile, EIA forecasts that global consumption of petroleum and liquid fuels will average 92.4 million b/d for all of 2020, which is down by 8.8 million b/d from 2019, before increasing by 5.8 million b/d in 2021. EIA estimates that the world consumed 95.6 million b/d of petroleum and liquid fuels in November, which is down 6.3 million b/d from November 2019 but up from the third-quarter 2020 average of 93.5 million b/d.

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