Citi Increases Crude Oil Price Forecast
January 12, 2021
Citi Research increased its average 2021 Brent crude price forecast by $5 to $59 per barrel following Saudi Arabia’s vow to cut output by more than expected. The bank raised its quarterly Brent price forecast by $5 per barrel through the first quarter of 2022, when it expects Brent to peak at $61 per barrel. It also lowered its first quarter 2021 oil demand outlook to 95.5 million barrels per day from 96.38 million barrels per day due to the more severe virus contagion, especially across Europe.
The 1.1% rise in the US dollar index over the past three treading session has helped to put downward pressure on prices on price yesterday.
Goldman Sachs believes that Saudi Arabia’s decisions to cut more production and Democrats gaining full control of the US.. government will cause Brent crude oil prices to hit $65 per barrel by mid-summer. Goldman Sachs had previously been saying that Brent crude oil would reach $65 by the end of the year.
The market has been trading higher being helped by talk of more stimulus. President-elect Biden is supposed to release more details in the next few days on his plans. Biden has said he wants “trillions of dollars, ” this is a number that generally exceeds the markets expectations.
The market is a bit higher this morning in what appears to be more congestion or sideways trading before another test higher as market participants continue to look to the future.