Covid may dent demand recovery of crud e oil

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Islamabad

As surge in global Covid-19 cases is likely to continue along with the slower-than-expected return of Iranian shipments, it will continue affecting the global markets for crude until the end of the current year, remaining a major source of volatility.

According to a poll, $70 per barrel looks to be a more realistic projection for Brent Crude prices for the rest of 2021, rather than the previously predicted $80 per barrel.

The survey of 38 analysts suggests Brent might hover at around $68.76 per barrel – up slightly from June’s $67.48 estimate. So far this year, the global benchmark averaged around $66.57.

“The wax and wane of Covid-19 waves will have more of an influence on sentiment than supply-and-demand fundamentals during the rest of the year, as we do not expect politicians to impose hard and broad-based lockdown measures anymore,” Julius Baer analyst Carsten Menke said, as cited by the media.—Agencies

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