In a sign that economic recovery is swiftly under way, Bank of Singapore (BOS) currency strategist Sim Moh Siong has announced an upward revision in oil price forecasts. Buoyed by OPEC+ supply discipline and stronger US commodity demand, this bullish prediction ultimately rides on how efficiently the world can roll out Covid-19 vaccines.
“Oil markets have moved faster than expected to the 12-month targets published in our 2021 oil outlook on the back of the OPEC oil cut and as the Democratic win in the Georgia runoffs improves prospects of higher US infrastructure spending,” Sim writes in a Jan 13 broker’s report, with resulting reflation supporting Brent price upside to US$62/barrell ($82.05) in a year’s time.
