Saudi's surprise output cut to lift Brent to $60 a barrel by mid-year: UBS

UBS expects Brent to trade at $63 per barrel in the second half of 2021

UBS raised its forecast for Brent oil prices to $60 per barrel by mid-year, following Saudi Arabia's surprise unilateral production cut and expectations of a sharp recovery in demand in the second quarter on vaccine rollouts and increased travel.
 

With Saudi Arabia's move, OPEC's production increase of 0.5 million barrels per day (bpd) for January is reversed in full, which will result in a tighter oil market in the first half of the year, analysts at the Swiss bank wrote in a note.
 

The world's largest oil exporter on Wednesday pledged additional, voluntary oil output cuts of one million (bpd)