Expert Chaslau Koniukh
  • Companies
  • Global investment
  • Investors
  • Terminology
  • Economy
  • Stock Market
  • World exchanges
  • Tech and Marketing
Oil prospects
Analytics

Oil prospects for the current year from Citi analysts

25.03.2021
2 min read

What are the oil prospects: forecast of cost and demand

Citi, the largest U.S. bank, made a forecast for the oil market. According to the information, the cost of raw materials will grow and by the end of this year it will reach 60 dollars per barrel. The U.S. bank experts are convinced that increased demand is the main driver for market development. Another important task is the reduction of reserves, the problem of which is extremely acute. On the whole, oil prospects are assessed as positive.
The main scenario from Citi Bank assumes that the market will retain the momentum of value growth. The balance of supply and demand should be restored, which would contribute to the reduction of raw material reserves in storage facilities.
By the end of this year, the price of Brent oil will rise to $60 per barrel, and WTI will reach $58 per barrel.
Citi analysts predict good prospects for the oil market, but there are also risks. For example, the last few weeks have seen a slowdown in the rate of decline in reserves. At the same time, the participating countries are reviewing the current OPEC+ agreements to increase production. These changes have had a negative impact on the segment, and the Brent price has fallen by 12%. However, experts hope that such dynamics will not be systematic, and soon everything will return to the decline in reserves and the rise in prices of raw materials. The pace of the global economy is growing, which means that demand for energy will increase, soon the level of oil consumption will reach the values observed in 2019 – then the demand per day was 101 million barrels.

Oil prospects

At present, the cost of oil is in the range of $40 per barrel, and Citi believes that the quotes of raw materials will go up steadily. In the second quarter of this year the oil price will be $55 per barrel.
The key factor affecting the market is the growing demand and increased production of oil products. In addition, as some segments recover, gasoline consumption is increasing. However, it is too early to talk about the recovery of the aviation industry, and therefore fuel is not yet as much in demand as before the pandemic. The demand for jet fuel will return to pre-crisis levels not earlier than 2024-2025.
It should be noted that the forecast from Citi Bank is more optimistic than from its colleagues from other companies and agencies. A number of experts are confident that the oil price in 2021 will remain at the same level as at the end of 2020, and if there is any growth, it will not be as significant as we would like it to be. Demand, in turn, will slow down political events and global sentiment in the market.

Tags: Analytics
0
Previous Post Swing trading: essence of the strategy and its benefits Next Post American Tower Corporation: sphere of activity, development history

You Might Also Like

the best currency for savings
Analytics
BKS Broker: the best currency for savings
28.02.2021
U.S. bond yields
Analytics
ING strategist: ten-year government bond yields may reach record levels
26.09.2021
time to buy
Analytics
Analyst Victor Dima: why it’s time to buy stocks of Chinese companies
14.05.2021
Analytics
Investors demand for the dollar drops: overview from Chaslau Koniukh
05.11.2020
platinoids palladium
Analytics
Dmitry Glushakov, VTB-Capital: why the demand for platinoids is growing
19.01.2022
strengthening of the Russian ruble
Analytics
Will the Russian ruble strengthen until the end of 2021: forecasts from Credit Suisse
23.07.2021

Recent Posts

  • 1reduction in investment
    German business expects reduction in investment: survey
    26.05.2022
  • 2guidelines for cryptocurrency exchanges
    Canada releases guidelines for cryptocurrency exchanges
    25.05.2022
  • 3How IT is used in banks
    How IT in banks helps transform the sector
    24.05.2022
  • 4Development of the financial sector-1
    Development of the financial sector in terms of DeFi potential
    23.05.2022
  • 5export volumes
    India’s export volumes rise to record levels
    22.05.2022

Popular Posts

  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Field of activity of the American Monsanto Company Corporation
  • Skolkovo analysts: the Russian energy market is suffering losses
  • Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh

Social media

Editor's Picks

Chaslau Koniukh
Analytics

American bankers from JPMorgan and Goldman Sachs advise to invest in gold: review by Chaslau Koniukh.

Spokesperson
17.08.2020
Expert Chaslau Koniukh
Analytics

Chaslau Koniukh on the analysts’ opinion on the key stake size change soon

Spokesperson
18.06.2020
expert Chaslau Koniukh
Analytics

Chaslau Koniukh: Internet trade market in Russia may reach 2.78 trillion rubles.

Spokesperson
30.05.2020
Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh
Analytics

Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh

Spokesperson
16.05.2020

Latest Posts

reduction in investment
German business expects reduction in investment: survey
26.05.2022
guidelines for cryptocurrency exchanges
Canada releases guidelines for cryptocurrency exchanges
25.05.2022
How IT is used in banks
How IT in banks helps transform the sector
24.05.2022

Chaslau Koniukh

Expert Chaslau Koniukh

Chaslau Koniukh – an expert in marketing and project management, IT consulting, international investments, investor, financial analyst. A commodity trader, private consultant, entrepreneur, lecturer, author of several articles on the stock market.

Popular Posts

  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Field of activity of the American Monsanto Company Corporation
  • Skolkovo analysts: the Russian energy market is suffering losses
  • Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh
  • Public investment in France: which areas receive the most attention
Expert Chaslau Koniukh
  • Facebook
  • Twitter
  • Instagram
  • Biography

Chaslau Koniukh – an expert in marketing and project management, international investments, financial analyst.

Social media

Menu

  • Biography
  • Companies and corporations
  • Global investment
  • Investors and Entrepreneurs
  • Economy
  • Market terminology
  • Stock Market
  • World exchanges
  • Tech and Marketing
  • Analytics