Citibank cuts WTI, Brent oil price forecasts by $5 for 2021 on covid concerns

Although the global market sentiment recently cheered hopes of the coronavirus (COVID-19) vaccines, analysts at the Citi Bank keep their dovish outlook for energy benchmark considering the larger-than-expected rise in COVID-19 cases, per Reuters.

The bank also expects OPEC+ to continue complying with its agreement to curb output through the fourth quarter of 2020 and into the first quarter of next year, rather than increase production in January.

The report highlights a $5 reduction into the oil price outlook for 2021 while indicating $54 and $49 as respective prices for Brent and WTI benchmarks.

In the end, the piece also opines on US President-elect Joe Biden’s victory while saying, “We would expect a Biden presidency to bring Russia and Saudi Arabia closer together, reinforcing their alignment in managing oil markets via the OPEC+ framework.”

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