Poll is expected to reach $ 59 a barrel
Economies are freed from the consequences of the "pandemic", which supports the rise in oil
Yesterday, an opinion poll showed that oil prices will witness a steady recovery this year, with the arrival of vaccines to prevent "Covid-19" to more people, the acceleration of the pace of economic recovery, and under the additional momentum of stimulus, and the control of supplies of major crude producers.
The survey, which included 55 participants, predicted that the price of "Brent crude" would reach an average of $ 59.07 a barrel this year, up from a survey last month that predicted an average price of $ 54.47 per barrel.
The average price of "Brent" since the beginning of this year is $ 58.8.
Of the 41 experts who participated in the January and February polls, 32 respondents raised their expectations.
Current restrictions
Most of the analysts said that the Organization of the Petroleum Exporting Countries (OPEC) and its allies (OPEC Plus) may ease the current restrictions on production, when they meet on March 4, but they will also agree to maintain control of supplies.
The poll expected oil demand to grow by between five and seven million barrels per day in 2021, but experts warned that any deterioration in the situation of the "Covid-19" outbreak or the possible lifting of US sanctions imposed on Iran may impede the oil recovery.
The poll expected the average price of US crude to reach $ 55.93 a barrel in 2021, compared to an expected average last month of $ 51.42 a barrel.
Bond prices
In addition, oil prices fell yesterday, as the collapse in bond prices led to gains for the US dollar, and expectations have grown that with oil prices returning to pre-pandemic levels, more supply will likely find its way into the market.
US West Texas Intermediate crude futures fell 96 cents, or 1.5%, to $ 62.57 a barrel, giving up all the gains it made the day before yesterday.
Brent crude for April delivery, which expired yesterday, fell 86 cents, or 1.3%, to 66.02 dollars a barrel, after losing 16 cents the day before yesterday.
May contracts
May contracts, the most active, fell to the low of $ 65.04 a barrel earlier, and fell 93 cents, or 1.4%, to $ 65.18.
"Crude oil has moderately retreated from recent highs, in light of an atmosphere of risk aversion, as Asian stocks fell broadly to follow the weak performance of Wall Street," said Margaret Yang, strategy at the Singapore-based Daily Fix.
She added that the selling in the bond market, which led to the rise of the US dollar and the increase in returns, puts pressure on primary commodities that do not yield returns.
The rise in the US currency increases the cost of oil priced in dollars to buyers of crude in other currencies.
Despite the low prices, the US Brent and West Texas intermediate crude oil is on its way to achieving gains of about 20% since the beginning of this month, as markets are experiencing turmoil in the United States, while optimism about the improvement in demand increases with the distribution of anti-Coronavirus vaccines. .
Investors are betting that a meeting next week of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group known as "OPEC Plus", will result in the return of more supplies to the market.
US crude prices are also facing adverse factors due to the loss of refinery demand, after the closure of several facilities on the coast of the Gulf of Mexico during a winter storm last week.
58.8
$ The average price of Brent crude since the beginning of this year.
Expectations of oil demand growth between 5 and 7 million barrels per day
in 2021.
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