There will be a sharper recovery in oil demand in 2021, according to Fitch Ratings in an article by Mining Weekly. But the reinstitution of lockdown measures in key markets in Europe and the United States may result in prices moderating as a result of lower fuel consumption and economic activity at the end of 2020.
“We maintain a bullish view into 2021, based on the core assumption of a rollout of an effective vaccine in the second half of 2021 and a broader global economic recovery supporting a return in oil demand,” Fitch analysts said, noting, however, that the lockdowns in Europe and some U.S. states will limit the upside potential for crude oil prices.
The firm anticipates the benchmark to average $48 per barrel of oil in 2021 and $50 per barrel in 2022, down from previous estimates of $51 per barrel and $53 per barrel, res