WTI to average around $60/ barrel in 2021 – BofA

Dhwani Mehta FXStreet

Brent and WTI to average $63/bbl and $60/bbl, respectively, in 2021, analysts at Bank of America Global Research (BofA) said in their latest client note.

Key quotes

“Our supply and demand forecasts suggest a 1.3mn b/d deficit in 2021 followed by a 170k b/d surplus in 2022.”

“We forecast global demand will rebound nearly 6mn b/d YoY in 2021 after falling 8.7mn b/d in 2020.”

“During 2021-23, we forecast demand will grow by more than 9mn b/d, the fastest pace since the 1970s.”

“Non-OPEC supply should grow more than 1 mn b/d YoY in 2021 and an additional 2mn b/d in 2022.”

“We project US supply to grow less than 200k b/d in 2021 and more than 1 mn b/d in 2022 thanks in part to robust NGL volumes.”

“OPEC supplies are set to rise 800k b/d in 2021 and 2.1 mn b/d in 2022 and OPEC+ adds back supply and as Iran returns.”

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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