Oil prices may rise by 42% in 2021, forecasts IMF

oil rig

Oil prices may rise by 41.7% in 2021 compared to 2020, the International Monetary Fund (IMF) said in a report published on Tuesday.

In January, the fund predicted that oil prices will rise by more than 20% in 2021.

The authors of the report noted, oil prices could reach $58.5 per barrel in 2021. At the same time, the forecast for 2025 is a drop in prices to $50.7 per barrel.

This is mainly due to a temporary tight supply and demand balance, expected this year in line with the International Energy Agency’s forecasts of a steady decline in oil reserves, with oil demand (supply) projected at 96.4 mln barrels per day in 2021, the report said.

Thus, according to forecasts, the average price of a barrel of oil will be $58.52 this year, and $54.83 per barrel next year. Last year it reached $41.29 per barrel.

The fund also noted that oil prices rose by 39% between August 2020 and February 2021, due to good news about vaccines and the rapid economic recovery in Asia.
Credit: TASS

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