Oil has almost fully won back its losses after the failure of the OPEC+ to reach an agreement on output cuts earlier this year. Notably, when members of the grouping failed to extend the deal the very first time, oil prices collapsed twofold, and the North American crude WTI turned negative at one point. Currently, global oil prices are showing positive dynamics with Brent trading at around 45 dollars per barrel and WTI holding near 42 dollars per barrel. Surprisingly, even Russian crude grade Urals has almost approached the level of Brent which does not happen so often. In general, the situation in the global oil market is rather stable, and even despite the pandemic, the outlook for oil prices remains positive. Oil managed to regain its ground on a number of strong bullish factors. One of them is a drop in US crude inventories. Thus, oil stockpiles in the US fell by 8.6 million barrels in a week whereas analysts expected a draw of 3 million barrels. Besides, economic activity in other countries is gradually recovering, thus boosting demand for fuel. The rapid rise in crude prices has already exceeded expectations. In 2021, Brent crude may average 45 dollars per barrel, while in 2022 it may reach the level of 53 dollars per barrel, analysts at Fitch said. Of course, a lot will depend on the situation around the pandemic and the policy of the OPEC+ members. Yet, if the positive trend persists, oil is likely to test new highs in the near future.
