Brent crude could drop to $45 in 2021 despite positive vaccine information, Fitch Ratings says

SINGAPORE — Fitch Ratings expects Brent costs to drop to $45 per barrel in 2021 — regardless that there’s excellent news on the vaccine entrance, the credit standing company stated this week.

That’s shut to 9% decrease than what a Refinitiv Eikon ballot is predicting. Brent crude could be round $49.35 subsequent 12 months, with $50 being the most typical forecast, in accordance to a survey of 36 analysts. The U.S. Energy Information Administration expects the worldwide benchmark to be at $46.59.

Dmitry Marinchenko, senior director at Fitch Ratings, stated the corporate is extra cautious.

“We expect prices to be, on average, at $45 next year for Brent,” he advised CNBC’s “Capital Connection” on Friday. “This assumes that the demand will remain weak until at least the second half of the year, because the progress with mass vaccination probably will not be very quick.”

An offshore drilling platform stands in shallow waters on the Manifa offshore oilfield, operated by Saudi Aramco, in Manifa, Saudi Arabia.

Simon Dawson | Bloomberg | Getty Images

OPEC and its allies on Thursday made a deal to enhance manufacturing by 500,000 barrels per day from January — a lot decrease than the unique settlement in April to increase output by 2 million barrels a day. That brings the manufacturing cuts to 7.2 million bpd from 2021.

Both oil benchmarks rose on Friday, with Brent up 2.01% at $49.69 and West Texas Intermediate gaining 2.02% to commerce at $46.56.

— CNBC’s Kevin Stankiewicz and Sam Meredith contributed to this report.

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