Jadwa expects gradual upside to oil prices, Brent to average $55 per barrel in 2021

Jadwa Investment said in a recent report that it expects gradual upside to oil prices in 2021 as the roll-out of COVID-19 vaccine helps boost oil demand recovery, especially so in the second half of 2021.

“Overall, we expect Brent oil prices to average $55 per barrel in full year 2021, which will, according to our forecast, push up oil revenue by 8% year-on-year,” the report issuer added.

If Aramco were to continue paying dividends to government at levels similar to this year, we would expect to see a reasonably higher oil revenue than currently projected, at around SAR 500 billion.

Jadwa added that it also assumes a sizable roll-out of a COVID-19 vaccine by mid-2021 with the Saudi Ministry of Health (MoH) recently opening up free registration of coronavirus vaccine for both citizens and expats.