Oil prices will stay below $ 40 per barrel in 2020, as measures to curb the global spread of coronavirus hit demand, and the collapse of the OPEC + transaction supports an increase in the surplus of raw materials, Reuters reported referring to its poll.
According to a survey of 40 analysts, the price of Brent crude oil will average $ 38.76 per barrel in 2020, which is 36% lower than the February forecast of $ 60.63.
The forecast for the American West Texas Intermediate has been reduced to $ 35.29 per barrel from $ 55.75 in February.
Brent and WTI are now trading just above $ 20 a barrel. Brent fell by almost 70% compared with January highs, as coronavirus-related restrictions weakened demand, and the price war between Russia and Saudi Arabia led to a flood of raw materials in the market.
“The floor has dropped out of the oil market, and we do not expect it to return until the fourth quarter,” Economist Intelligence Unit analyst Cailin Birch said.
Oil prices took a steeper dive in March when a deal on supply curbs between the OPEC, Russia and other producers, a group known as OPEC+, fell apart.
A spokesman for the Saudi Arabian ministry of energy said on Friday that there were no contacts between the ministers of energy of Saudi Arabia and Russia either regarding the increase in the number of OPEC + member states or to discuss a joint agreement to stabilize oil markets.
Analysts expect a reduction in world oil demand by 0.7-5.0 million barrels per day in 2020, which could potentially overshadow the fall during the financial crisis in 2009.