Oil prices will be hemmed in the $40-45 per barrel range for the rest of the year, a Reuters poll showed on Friday, with analysts expecting a rough road to recovery into 2021 as an accelerating coronavirus outbreak fans renewed demand concerns.
A survey of 41 economists and analysts forecast global benchmark Brent crude prices to average $42.32 a barrel in 2020, slightly down from the $42.48 forecast in the previous poll and the $42.45 average so far this year.
The outlook for 2021 was also reduced to $49.76 a barrel from last month’s $50.41 consensus.
A resumption in Libyan supply could further pressure prices, analysts said, while markets are bracing for the Nov. 3 US elections.
“The two major factors remaining in 2020 that could break the current range are the US elections and surprisingly good vaccine news,” said David Olzant, an analyst at Raiffeisen.
