MOSCOW (Pakistan Point News / Sputnik - 26th January, 2021) The International Monetary Fund (IMF) on Tuesday upgraded the forecast for the simple average of oil prices this year by $3.30 per barrel to $50.03 per barrel, as demand is expected to grow after suffering a huge contraction in 2020.
"Simple average of prices of UK Brent, Dubai Fateh, and West Texas Intermediate crude oil. The average price of oil in US Dollars a barrel was $41.29 in 2020; the assumed price, based on futures markets (as of January 4, 2021), is $50.03 in 2021 and $48.82 in 2022," the IMF said in the World Economic Outlook Update report.
In 2020, oil prices plummeted due to the low oil energy demand sparked by the economic downturn and the suspension of the majority of air traffic amid the outbreak of COVID-19. However, in 2021, it is expected to recover and grow by 5.9 million barrels a day year-on-year, according to the Organization of the Petroleum Exporting Countries' latest forecast.
