Outlook on oil prices for 2021

Outlook on oil prices for 2021

/ Financial News / Wednesday, 30 December 2020 10:02

Oil & Gas companies are watching very closely the impact of vaccine orders around the world on oil prices. In fact, all financial markets are focusing on this matter as well.

Many countries have started the vaccination campaign, but each at their own pace. Until now, the vaccines’ impact on oil prices is still shy, as a 3rd large wave is attacking Europe, Canada and USA. This will continue to impede travel, stimulate more lockdowns and quarantines. These measures altogether will hold back the reshaping of economies especially with oil demand still at low levels due to grounded planes and parked cars etc.

However, experts still see a bright future. In Q2 of 2021, travel is expected to resume by 40% which will influence oil and gas markets, and evidently travel markets that suffered the most. In addition, oil prices are expected to reach over 50$ per barrel in Q2 2021.

In addition, prices may be affected by the resumption of Iranian oil exportations with the new USA administration, or the Libyan oil exportation if the local conflict is resolved by next year.

Let’s wait and see, meanwhile stay safe.

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