Oil prices seen to average $60 as inventories keep rising above 5-year high mark – MENAFN.COM

SectorOil & Gas

(MENAFN - Khaleej Times) Oil prices are forecast to average $60 per barrel in 2021 with Iran's potential return to the oil market remaining a key factor in 2022 even as inventories keep rising above a five-year average, market experts said. Analysts at the Institute of International Finance said global oil inventories would edge up in the second half of 2021 supported by the rise in US and Opec+ production as Saudi Arabia's voluntary cut may not be renewed. 'We see global oil inventories rising supported by the gradual recovery in oil supply. On April 1, Opec+ agreed to gradually increase production over the next three months, with the view to restore a quarter of the production cuts agreed a year ago in response to the pandemic, said the Washington-based IIF.

Oil prices have been under pressure even as the American Petroleum Institute (API) reported a build in crude oil inventories of 3. 910 million barrels for the week ending March 26. Analysts had predicted a much smaller inventory build of 107, 000 barrels for the week. The IIF said in its latest report that global oil supply would be exceeding demand and oil prices moderating for the rest of ...read more...