The price of Brent crude over the next three years will grow at the fastest pace since the 1970s and could reach $ 100 per barrel, The National reports, citing an analytical report from Bank of America.
It predicts that in the medium term - in the period up to 2026 - the price of Brent will average between $ 50 and $ 70 per barrel.
Bank analysts point out that the resumption of global exports and industrial production suggest that the demand for oil will recover faster than previously predicted.
Improving fundamentals in oil supply and demand, unprecedented global fiscal and monetary stimulus, and a stronger economy in China, the world's largest importer of commodities, are indicative of a broader recovery in crude oil prices, analysts say. Bloomberg also writes about the possibility of Brent price returning to $ 100 per barrel with reference to the same analytical report by Bank of America.
Bank of America also changed its price forecast for 2021, Reuters reported.
The bank expects the price of Brent oil this year to average $ 60 per barrel - higher than the previous forecast of $ 50. The bank's analysts predict an increase in the price of WTI crude oil to an average of $ 57 per barrel this year. Brent prices may temporarily jump to $ 70 a barrel in the second quarter of 2021, analysts say. Brent and WTI have risen in prices over the past month by 18.6% and 18%, respectively. Two-thirds of the world's oil is traded under the Brent brand, Forbes reports.
