Oil prices are likely to jump much faster than the market currently expects, in order to meet expected demand by the end of the decade, according to Barclays’s analysts.
In the bank’s latest analysis of the oil market, dated Oct. 14, its strategists forecast that Brent oil LCOX5, -0.43% will rise to $85 a barrel by 2020, in their base-case scenario. That level is a far cry from the $65 a barrel that the futures curve is indicating at the moment.
Even in the bank’s low-demand scenario, the forecast of $75 is well above the futures curve, while Barclays’s high-demand case predicts prices at $100.
Brent traded around $49.50 a barrel on Thursday, while crude oil CLX5, -1.09% was at $46.17.
