FXStreet reports that ABN AMRO revises up oil price forecasts, but the $50-60/barrel trading range remains the base scenario.

“Based on the technical outlook, oil prices could rally to $70-72/barrel, which are the peaks of September 2019 and January 2020. However, based on fundamental analysis, the case for further price gains is hard to make, although we are seeing optimism in financial markets in general.” 

“We continue to expect a trading range in which the average Brent oil prices trade roughly between $50 and $60/barrel. Nevertheless, market speculation may temporarily push oil prices higher. Based on the supply/demand balance, we think that such much higher oil prices are not sustainable and that oil producers will then start to increase production.”

“We have also adjusted the oil price somewhat for 2022 and 2023. Again, we still see the $50-60 range. However, the price could rise slightly as a result of the expected economic recovery once the lockdowns ease.”