WTI crude oil , as noted, will be traded for another three to five dollars cheaper, and the low price can last for several weeks or until the end of the year. Some players in the oil market began to buy fuel for the future, hoping for higher prices. Others believe that prices will continue to decline.
According to the analyst of the Chinese hedge fund Shanghai Youlin Investment Management, the price of WTI crude oil will fall below the cost of shale oil production in the United States.
Bank analysts also believe that quotes will continue to decline.
At Goldman Sachs, the Brent price forecast was lowered by ten dollars to $ 20 per barrel. Citigroup provides a scenario of $ 17 per barrel or lower, and in the worst case scenario, up to five dollars per barrel or even negative real prices in a number of regions due to lack of storage and logistics problems.
Oil demand at the beginning of the year fell amid the coronavirus pandemic.
Earlier, OPEC + countries were not able to conclude a deal to change the parameters of the agreement on the reduction of oil production or its extension. Russia rejected the proposal to further reduce production and proposed to maintain the existing conditions.
Saudi Arabia insisted on reducing production. Starting April 1, obligations are withdrawn from the countries participating in the OPEC + transaction.
Later, Riyadh , on the contrary, announced an increase in production and lower prices for black gold, which collapsed quotes. Since the beginning of the year, prices have more than doubled down.
The agreement of OPEC and non-member countries on the reduction of oil production has been in force since the beginning of 2017. It was repeatedly extended, and the conditions changed.
Contact us: [email protected]
The article is written and prepared by our foreign editors from different countries around the world – material edited and published by Ordo News staff in our US newsroom press.