Barclays sees low threat to oil demand recovery, Brent at $66/b

London (Quantum Commodity Intelligence) - The resurgence of Covid-19 in Asia will only dent the gradual recovery in global oil demand, Barclays said Friday, which saw Brent averaging $66/b and WTI averaging $62/b this year in a research note.

"Extended mobility restrictions in the region might slow the demand recovery somewhat, but seem unlikely to stall it for a sustained period, given largely positive results of vaccinations programs worldwide," said Barclays.

The British bank added there is downside risk to oil prices if there is a swift agreement to revive Iran's nuclear deal, but such a scenario might also cause OPEC+ to ease back on opening the taps too soon.

Global oil stocks could rebalance over the next two to three months, given a recent drawdown in stocks and a projected deficit of 1.5 million bpd in the second half of the year.