With demand mounting and global supply in catch-up mode, oil prices are likely to climb in the second half of 2021 and hold strong for several years, as economies around the world recover from the coronavirus pandemic and drive up energy needs, analysts at Raymond James & Associates Inc. said Monday.

oil supply

The analysts, including John Freeman and Pavel Molchanov, estimated in a report that West Texas Intermediate (WTI) crude prices – the United States benchmark — would start 2022 at $80/bbl and average $75 over the course of next year. That is up notably from the team’s March forecast of $60 to start 2022 and a $58 average for the year.

Notably, the Raymond James team expects the WTI average to hover around $70 over the subsequent five years.

“In order to reach a balanced...