Oil prices may edge up on higher global demand: survey

Oil prices are expected to witness a gradual increase this year as economies shake off the economic effects of the COVID-19 pandemic, Reuters reported, citing its recent survey.

The survey of 45 participants forecast Brent crude would average $64.79 per barrel this year -- the sixth straight upward revision in the 2021 consensus -- up slightly from April’s $64.17 projection.

Global demand was seen growing 5-7 million barrels per day in 2021.

In the second half of the year, the market may slip into a significant supply deficit as global oil demand should pick up strongly, Commerzbank analyst Carsten Fritsch was quoted as saying.

However, concerns remain about shrinking consumption in India, the world’s third-largest consumer, which is reeling from a new COVID-19 wave, the report said.