Fitch downgrades oil price forecast for 2020 to $ 35
US, WASHINGTON (ORDO NEWS) — Fitch rating agency revised the forecast for oil prices for 2020-2021, lowering the estimates due to the impact of the coronavirus pandemic on the market, the agency said.
So, the forecast for Brent price for 2020 is worsened from $ 41 to $ 35 per barrel, the estimate for 2021 is from $ 48 to $ 45 per barrel. The market is under pressure from falling demand and supply growth, the agency notes.
In 2020, oil consumption will be less than in 2019 due to quarantine measures, as air transportation and automobile traffic, which account for 35% of global demand, have suffered the most. At the same time, OPEC + countries cannot agree on a policy to equalize production, which will lead to an increase in production by OPEC by about 3 million bpd.
Over the past three months, under the influence of various factors – from the OPEC + transaction breaking up to quarantine restrictions due to coronavirus and falling oil demand – the price of Brent has dropped to $ 25 per barrel (at the peak of the fall, the price reached below $ 22 per barrel, which is not was almost 20 years old).
At the same time, on Thursday, the cost of futures for Brent crude oil for delivery in June 2020 on the ICE exchange in London at its peak increased by 46.69% to $ 36.29 per barrel, according to the trading platform.
At 17:47 UTC, the price of oil of this grade is growing by 22% and is trading at $ 30.65 per barrel.
The cost of WTI oil is growing by 24.8% – up to $ 25.67 per barrel.
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