A Reuters survey showed on Friday that oil prices will stabilize near their current lows in the coming months as the collapse of the agreement between the major producers to reduce production impedes the market, which is already suffering from low demand due to the Coronavirus.
Analysts in the surprise poll lowered their expectations for Brent crude prices to $ 42 per barrel on average this year from $ 60.63 in the February monthly poll.
It is expected to be around $ 34.87 in the second quarter and $ 39.05 in the third quarter, before restoring some of the gains to $ 44.08 in the last quarter. The survey, which included 21 analysts, expected the average price of US crude to be $ 30.37 a barrel in the second quarter and around $ 37 this year.
Crude oil futures fell more than 30% in one batch point, the biggest one-day drop since the Gulf War in 1991, after the Organization of the Petroleum Exporting Countries and allies including Russia, known as OPEC + agreed to extend its production cuts.
In the Saudi-Russian price war resulting from the race for their market share, Saudi Arabia lowered the official selling price for its crude degrees to all destinations and plans for record production in April.
Meanwhile, US shale oil producers were quick to deepen spending cuts and reduce future production. The collapse of the OPEC + agreement added to fears that demand would shrink due to the rapid global spread of the coronary virus epidemic, which paralyzed supply chains and led to a crash in financial markets.
Global oil demand is expected to record its first quarterly decline for the first time since 2009, with most analysts predicting a drop anywhere between 0.8 million barrels per day and 4 million barrels per day in the first half of 2020. For the year, modest growth in The demand is 0.1-0.5 million barrels per day.