According to Moody’s rating agency, oil prices are unlikely to rise significantly in 2021. Analysts say the outlook for the oil and gas market is rather stable next year.
A slight rise in oil prices will not lead producers to boost capital investment. This may negatively affect the industry, including the storage and delivery sectors. Still, the agency assumes there will be an increase in fuel demand but not to pre-coronavirus levels.
Analysts at Moody’s forecast crude prices to stay in the range between $40 and $45 per barrel. Thus, Brent oil benchmark is expected to hold at the lower end of the medium-term price forecast of $45 to $65 per barrel. As for WTI light crude, it is predicted to trade within the channel of $40 and $60 per barrel. The agency also suggests that natural gas prices at Henry Hub will range from $2 to $3 per million British thermal units (MMBtu).
The supply cuts implemented by the OPEC+ members will definitely help keep oil prices at the current levels. Yet, the pace of the market rebalancing may be rather low next year just as the recovery of global fuel demand.
