Industry participants and analysts expect crude oil prices would unlikely breach the current levels due to the fast spread of the COVID-19 Delta variant, which could dampen economic activity and fuel consumption. A Reuters’ survey projects Brent will average $68.02 per barrel in 2021, compared to the previous forecast in July for $68.76 per barrel. It marks the first downgrade in the market’s view since November 2020. Brent has averaged about $67 per barrel so far this year.
Separately, the International Energy Agency predicted that global oil demand would grow half a million bpd lower than previously anticipated, mostly due to the spread of the delta variant. On the other hand, the Organization of the Petroleum Exporting Countries has so far stuck with its forecast for a strong demand recovery. Some analysts said OPEC+ might reconsider their deal to raise output by 400,000 bpd each month which started last month.
