Daily Management Review

OPEC expects oil to return to $ 40 per barrel later in 2020


OPEC believes that oil quotes in the second half of 2020 will fluctuate around $ 40 per barrel, said the Minister of Energy of Algeria, Mohamed Arkab, said on Algerian television. He is president of the OPEC conference until December 2020.

According to him, “markets began to give positive signals” in the last few days after a significant decline a week earlier. According to the forecast, in May-June, world prices on average will rise to $ 35 per barrel as a result of the implementation of OPEC ++ agreements.

Arkab also noted that, in addition to OPEC ++ decisions, price recovery will be facilitated by the results of those measures that have been taken in some countries, including China and Europe.

In mid-April, the OPEC + countries agreed to reduce oil production on May 1 and call on major producers outside the alliance to provide a proportionate and timely contribution to efforts aimed at stabilizing the oil market. The base for calculating the reduction quotas is October 2018, with the exception of Russia and Saudi Arabia, for which it will be 11 million barrels per day.

In May-June, OPEC + oil production decline from this level will be 9.7 million bpd (23%), from July to the end of 2020 - 7.7 million bpd (18%), then until May 2022 - 5.7 million bpd (by 14%).

source: finance.yahoo.com