The International Monetary Fund (IMF) has forecasted a 41.7% rise in oil prices in 2021 compared to 2020.
In a report published on Tuesday, it said oil prices could reach $58.5 per barrel in 2021. The forecast also said prices are likely to drop to $50.7 per barrel in 2025.
The report said this is mainly due to a temporary tight supply and demand balance, expected this year in line with the International Energy Agency’s forecasts of a steady decline in oil reserves, with oil demand (supply) projected at 96.4 mln barrels per day in 2021.
The average price of a barrel of oil will be $58.52 this year, and $54.83 per barrel next year. Last year it reached $41.29 per barrel, according to the forecast.
Oil prices, it also noted, rose by 39% between August 2020 and February 2021, due to good news about vaccines and the rapid economic recovery in Asia.