Oil prices in the first quarter of 2020 will not rise above 60 dollars per barrel amid falling demand from China — the main consumer of raw materials in the world.
Writes about this TASS with reference to the comments of the British consulting firm Wood Mackenzie.
World oil demand in the first quarter decreased by 900 thousand barrels per day, to 98.8 million barrels, due to the restriction of air traffic in the framework of combating the spread of the deadly coronavirus in Chinese. At the same time, in China the demand in the near future, will fall by 200 thousand barrels per day, up to 13 million predicted by analysts. This is the first drop in demand in China since 2009. He will OPEC need to cut production to sustain raw material costs above $ 50 per barrel.
The epidemic of the coronavirus could cause a painful blow on the oil, because it fell on Chinese New year. At this time the inhabitants of the country, traditionally, travel, visiting relatives in other regions or going on holiday abroad. However, due to disease in 2020, the Chinese nationals refused to travel, resulting in a drop in demand for gasoline and jet fuel.
In addition, the affected industry of the country: in late January — early February, the Chinese enterprises actually stopped due to the Christmas holidays. However, due to the epidemic, the authorities in 2020 have been forced to extend the week-long holidays.
Brent crude for February 3 fell below $ 55 a barrel for the first time in more than a year. In the future, the oil continued to fall. As of the morning of 5 February, the cost of raw materials on the London exchange ICE made 54,16 per barrel.