Oil prices that have collapsed since the beginning of this year are likely to continue to fall and could fall to $20 per barrel or lower. Such trends are evidenced by a survey of traders and representatives of a number of the world's largest oil companies. This is reported by NefteRynok.
Eighteen out of 20 respondents believe that the price of Brent will drop to $20 per barrel and may go further down. The price of WTI, according to their estimates, may be lower by another $3-5 per barrel.
Traders say that such oil prices can remain at such a low level from several weeks to several months, possibly until the end of this year.
“The level of $20 per barrel can easily be achieved by mid-April”, said director of the Indian oil refining company Bharat Petroleum Corp.
The oil market was hit hard by a sharp drop in demand, driven by widespread restrictions in the fight against the coronavirus epidemic. OPEC and Russia this month could not agree on another reduction in production in response to lower demand, and started a war for market share, which exacerbated the recession.
Goldman Sachs analysts earlier this week lowered their Brent forecast for the second quarter to $20 per barrel from $30 per barrel.
Citigroup said the bank’s baseline scenario assumes that Brent’s average price will be $17 per barrel in the second quarter, while the bearish forecast is to drop prices to $5 per barrel.
Energy Aspects experts see the risk of lowering the cost of Brent to $10 per barrel in April, expecting that during the rest of 2020 it will be above $20 per barrel.
On March 9, Brent crude oil prices fell to $31.43 per barrel.
This happened against the background of the fact that OPEC could not agree with OPEC+ countries to reduce oil production
Earlier it was reported that the price of Russian Urals oil fell below $19 per barrel.
Tags: contracts, oil, tariffs, legislation, EU, Top management, USA, energy market, добыча нефти, drilling, коронавирус, RF, ОПЕК+, OPEC, export, import, Putin, stocks, agreement, volumes, oil products, oil deliveries, energy sector, quarantine, Brent, WTI