Oil price outlook steady
Modest gains expected in 2021, supported by Covid vaccine rollouts and a recovering world economy.
Dubai crude oil prices, the benchmark used in Southeast Asia, are forecast to average between US$45 and $55 per barrel this year — they ended 2020 around $51 — as the market expects that the Covid-19 pandemic will ease and economic activity is likely to pick up.
After plummeting by an estimated 8.8 million barrels per day (bpd) or nearly 9% in 2020, world oil demand is expected to grow this year by 5.7 million bpd to 96.9 million, the International Energy Agency (IEA) forecast in December. This would be in line with world economic growth of 5.2%, recovering from a contraction that the International Monetary Fund estimated at 4.4% — an even bigger plunge than the average of 4.3% during the…
