I'm always fascinated by analysts forecasts on commodity prices, be it oil, copper, iron ore, cubic zirconia, whatever. eg this article has UBS and RBC forecasting average 2021 Brent of 68.5 & 67.5.
I really don't think some analysts understand the maths behind averages. I'm not sure they consider the front-month(s) leading in, which is pretty blody important. You can't really look at a year in isolation because prices are rolled over.
Example: assume Brent holds 85 through to 31 December. 2022 comes and Brent loses 2% every single month so 82.45, 79.98, 77.58 etc. By Dec we're at 58.98 but that's still only an annual average of $70. Without another black swan even it's just not possible as prices would have to undershoot the average for most of the year.
TLDR - calling BS on these Brent price targets.
WPL Price at posting:
$25.40 Sentiment: Buy Disclosure: Held
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