According to the forecast prepared by Bank of America, this year, prices of hydrocarbons will show a significant rise. Currency strategists at the bank foresee oil prices to settle higher than $100 per barrel. They believe that this trend will last for the next several years.
Earlier, JPMorgan and Goldman Sachs, the two largest banks, said that a new rally in the oil market would start soon. Analysts from both organizations suppose that the price will skyrocket after the COVID-19 pandemic is over. The most optimistic forecasts unveiled a surge in global oil prices to $100 per barrel, the level last seen in 2014.
Estimates provided by both banks predict a rise in oil consumption amid the implementation of stimulus measures in most countries. Like other organizations, Bank of America has upwardly revised the price of Brent crude. They suppose that in 2021, the price of this benchmark will jump to $60 from the current level of $50. There are several reasons for such growth: lower supplies against the background of the abnormal cold weather, a cut in oil production in OPEC+ countries, and stimulus programs launched to support economies.
Experts at Bank of America foresee an increase in Brent price to $70 per barrel in the second quarter of the year. At the same time, consensus forecast from analysts polled by Bloomberg suggests that Brent crude will be below $65 per barrel until 2025.
On Monday, March 1, Brent crude futures advanced by 0.84% to $65.04 per barrel. At the same time, WTI futures inched up by 0.55% to $62 per barrel. Hydrocarbons began gaining in value during the last week of February. This occurred just before the publication of the US oil inventories data from the US Energy Department.
