On Monday, Citi Research cut its 2021 oil prices forecast following the resurgence in the coronavirus cases.
For 2021, Citi slashed its expectations by USD5/barrel on both Brent and WTI crude prices to USD54/barrel and USD49/barrel respectively.
It also estimated oil demand to slump by 8.9 million bpd this year, but to jump by more than 7 million bpd next year.
Citi also saw the Organization of Petroleum Exporting Countries and its non-member oil producer allies (OPEC+) to maintain the current level of oil output cut of 7.7 million bpd until the first quarter of 2021 instead of increasing output by 2 million bpd in January.
The bank also predicted that the OPEC+ framework will strengthen Russia and Saudi Arabia’s oil management cooperation in a Joe Biden US Presidency term.
Following Biden’s win in the US Presidential election, Brent futures soared by more than 2% as appetite for riskier assets jumped, offsetting the concerns over oil demand.
