PTT Expects Economic Recovery in 2021 to Boost Oil Demand to $55 as Global GDP Grows 5.2%

PTT Expects oil demand to recover along with global economic recovery in 2021, forecasting Brent crude to trade between 45-55 US dollars per barrel with a global GDP at 5.2% next year.

 

Energy and petrochemical experts of PTT Public Company Limited (PTT), known as PRISM Expert, expected an economic recovery in 2021 after being hammered with the coronavirus outbreak this year. The recovery would also reflect higher oil prices as well.

PRISM Expert forecasted global GDP to expand 5.2% in 2021, which would result in a jumping Brent crude to trade between 45-55 US dollars per barrel as oil demand would increase by 5.3 million barrels per day. As for the bear case scenario with only 3.4% GDP growth, the team expected Brent crude to move between 35-45 US dollars per barrel as oil demand would increase only 1.3 million barrels per day.

 

Mr. Kanin Bodipat, strategic officer from PTT Exploration and Production Public Company Limited (PTTEP), stated that the market needed to keep an eye on OPEC‘s movement in curbing oil production in 2021 as well as OPEC+. Meanwhile, oil production from the U.S. would also indicate the direction of oil prices as well.

 

CIMBT estimated the Thai GDP to grow 3.5-4.5% with a gradual recovery from a contraction this year due to the coronavirus outbreak. The core drive of the Thai economy would still be the export sector, while domestic consumption remained important and hoped that tourist arrivals would return in the second half of 2021.However, the SMEs would see a slow recovery.