AlwaysFree: Citi Cut 2021 Oil Prices Forecast

On Monday, Citi Research cut its 2021 oil prices forecast following the resurgence in the coronavirus cases.

For 2021, Citi slashed its expectations by USD5/barrel on both Brent and WTI crude prices to USD54/barrel and USD49/barrel respectively.

It also estimated oil demand to slump by 8.9 million bpd this year, but to jump by more than 7 million bpd next year.

Citi also saw the Organization of Petroleum Exporting Countries and its non-member oil producer allies (OPEC+) to maintain the current level of oil output cut of 7.7 million bpd until the first quarter of 2021 instead of increasing output by 2 million bpd in January.

The bank also predicted that the OPEC+ framework will strengthen Russia and Saudi Arabia’s oil management cooperation in a Joe Biden US Presidency term.

Following Biden’s win in the US Presidential election, Brent futures soared by more than 2% as appetite for riskier assets jumped, offsetting the concerns over oil demand.

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