Brent crude to average $46.2 in 2020: MUFG

Brent crude to average $46.2 in 2020: MUFG

Brent crude is expected to reach $44.1 per barrel (/b) towards the end of the third quarter (Q3) of 2020 and $48.7/b in Q4, a report said, noting that Brent is forecasted to average $46.2/b for 2020 as a whole.

For 2021, the average forecast for Brent is maintained at $56.6, said the latest Oil Market Weekly report from Mitsubishi UFJ Financial Group (MUFG), a Japanese bank holding and financial services company

"Our oil price conviction is emphatically shifting more bullish, reflecting three developments,“ MUFG said in the report.

"First, tightening fundamentals with investors increasingly embracing the oil markets move into deficit since early June.

"Second, ongoing US dollar ($) depreciation (a weak $ makes $ priced commodities cheaper to purchase on a relative basis) - with the negative oil-$ correlation currently at a