RUS | ENG | All
Enter the email or login, that you used for registration.
If you do not remember your password, simply leave this field blank and you will receive a new, along with a link to activate.

Not registered yet?
Welcome!

2020-09-07 11:30:00

OIL PRICES 2021: $50-$55

OIL PRICES 2021: $50-$55

PLATTS - 04 Sep 2020 - The global oil market will remain volatile next year with prices in the range of $50-$55/b as the world continues to recover from the coronavirus pandemic, Russian energy minister Alexander Novak said Sept. 4.

Despite growing stability in the market due to recovery in demand, the consequences of the pandemic would cause "many uncertainties" for the future, Novak said at the virtual Global Manufacturing and Industrialization Summit.

"My forecast is that the average oil price will be $50-$55/b. But we should expect volatility in general," Novak said.

He said the price could reach as high as $65/b at some point next year, but this could cause the global oil market to overheat.

Front-month ICE Brent crude futures stood at $43.17/b at 1545 London time.

Overall, the drop in oil demand this year will stand at 9 million-10 million b/d, he said, adding that the shortfall was being closely monitored by OPEC+ on a monthly basis.

The slump in demand peaked at 25 million b/d in March, but since then OPEC+ output cuts and a slow pick-up in demand have led to a gradual reduction in inventories.

The drawing of OECD oil stocks could bring inventories down to the five-year average in 2021 if the trend continues, Novak said.

"Today the situation is clearer than in April, there are more certainties in the market," he said.

Rise of renewables

The coronavirus pandemic has significantly changed the structure of the global energy mix and put the emphasis on renewables, he said.

"Renewables are being produced at a higher rate now, production volumes increased by almost 5% on the year," Novak said.

The percentage of renewables in the global energy mix by 2040 was now set to be higher at 35%, according to Russian estimates, compared with 26% previously.

However, the role of hydrocarbons will remain crucial, with environmentally friendly natural gas taking a leading role, he said.

Russia, on its part, had decided to extend a government program supporting the development of the renewable energy by 10 more years until 2034, with the aim of renewables accounting for 4-5% in Russia's energy mix, up from about 2% at the moment.

"We have set ourselves the task of extending the renewable energy program for another 10 years, building 10 GW more, and reducing the production cost to make it competitive," Novak said.

-----


Earlier:

OIL PRICES 2021: $50-$55
2020, September, 3, 12:50:00
OIL PRICE: BELOW $44
Brent fell 79 cents, or 1.8%, to $43.64 a barrel, WTI were down 67 cents, or 1.6%, at $40.84 a barrel.
OIL PRICES 2021: $50-$55
2020, September, 2, 13:15:00
OIL PRICE: BELOW $46 YET
Brent was up 37 cents, or 0.8%, to $45.95 a barrel, WTI rose 34 cents, or 0.8%, to $43.10.
OIL PRICES 2021: $50-$55
2020, August, 27, 13:50:00
U.S. OIL INVENTORIES DOWN BY 4.7 MB TO 507.8 MB
U.S. commercial crude oil inventories decreased by 4.7 million barrels to 507.8 million barrels,
OIL PRICES 2021: $50-$55
2020, August, 26, 12:45:00
U.S. OIL MARKET UPDOWN
“Although the market remains uncertain, we saw encouraging signs in July with gradual rebalancing of oil supply and demand,” API Chief Economist Dean Forman said. “Increases in U.S. refinery throughput and capacity utilization in July – coupled with inventories receding from record highs – has reinforced expectations for the continued demand recovery.”
OIL PRICES 2021: $50-$55
2020, August, 20, 14:20:00
OIL DEMAND 97%
it is estimated that the world will reach about 97% of pre-pandemic oil demand during the fourth quarter
OIL PRICES 2021: $50-$55
2020, August, 13, 13:45:00
OIL DEMAND WILL UP BY 7 MBD
For 2021, world oil demand growth is forecast to rise by 7.0 mb/d,
OIL PRICES 2021: $50-$55
2020, August, 13, 13:40:00
OIL PRICES 2020-21: $43-$50
monthly Brent spot prices will average $43/b during the second half of 2020 and rise to an average of $50/b in 2021.
All Publications »
Tags: OIL, PRICE,