According to Goldman Sachs, the war for the price of oil, OPEC started, may lead to lower prices for Brent crude to $ 20 a barrel.
This was stated by the team of Goldman Sachs analysts led by Damien Coralina, reports “Hvil”.
The firm lowered its forecast for the second and third quarter for Brent oil to $ 30 per barrel. In addition, today crude oil West Texas Intermediate is trading at $ 29 per barrel in the second quarter and $ 28 per barrel in the third quarter.
“A price war between OPEC and Russia, which clearly began this weekend, completely changes the prospects of the oil and gas markets,” said Courvalin.
In his opinion, actually “the Outlook for the oil market even more deplorable than in November 2014, when this pricing war started the last time, since we are talking about a significant fall in demand for neftis of coronavirus”.
“The Outlook for the oil market are even more sombre than in November 2014, when the price war started last time, because it coincided with a marked decline in demand for oil due to the coronavirus,” — analysts say.
The organization of countries-exporters of oil and its allies are unable to reach agreement on how to limit production to an outbreak of the coronavirus, which has already been reflected in prices for this product. Weekend Saudi Arabia cut the price at least 20 years, starting a price war and lowering oil prices by 31% .
According to Courvalin such price levels will begin to create a “severe financial stress and the decline in production” from oil shale and other producers of high-cost and may exacerbate the decline in demand for oil.