OUTLOOK BRIGHTENS FOR OIL, BUT DISCIPLINE MATTERS: Over the weekend many analysts have revised their oil price outlook with Bank of Singapore forecasting $62 a barrel for Brent this year. Two key developments last week such as the OPEC oil cut and as the Democrat’s win in the Georgia runoffs, have significantly changed the supply demand dynamics of oil market. While greater supply control looks possible, the dominance of both houses of Congress by Democrats would mean greater US spending. While the post-pandemic economic recovery is likely to ease demand drag, on the supply side, more than the recent voluntary Saudi sacrifice of 1 million barrels per day, greater discipline supported by OPEC+ group cohesion is key to sustain the current upswing. [COMMENT BY: Babu Das Augustine, Business Editor]
AFP