MOSCOW (Pakistan Point News / Sputnik - 15th June, 2021) Fitch Ratings has announced raising its 2021 price assumptions from $58 to $63 per barrel for Brent crude and from $55 to $60 for WTI.
The agency's prediction for 2022 is $55 per barrel for Brent and $52 for WTI. Fitch also expects both Brent and WTI to be sold in 2023-2024 for $53 and $50 per barrel, respectively.
The company explained the revised estimates by a rebound in prices since the beginning of the year, as well as the market deficit caused by the renewed demand and limited supply from OPEC+ countries.
Fitch notes the rising demand in the first half of 2021 and predicts that it will continue if vaccination is successful and lockdown measures are lifted.
The key factor in the oil supply will be the policy of OPEC+, according to the agency. The planned spike in oil production is expected to meet the current demand, but is not enough to balance the market in the second half of 2021.
At a meeting earlier in the month, OPEC+ decided to maintain the previous parameters of the deal with a view to continuing to boost production in July.
