The oil crisis of 2020 was the worst for 100 years. However, according to analysts, the fall in prices for “black gold” — is not the limit.
As reported Financial Times in the next few months, oil storage and oil tankers is completely filled with cheap oil, causing prices to fall even lower.
Analysts noted that the drop in prices affected by several factors:
Stopping production around the world, as well as closing of borders and cessation of flights due to pandemic coronavirus.
The failure of the transaction OPEC+ reduction of oil production. In response to Russia’s refusal from signing the agreement with the OPEC countries+ Saudi Arabia started a price war. The result was the decline in oil prices to 20-year-old level.
Coronavirus pandemic, which continues to gain momentum in the coming months will lead to a further fall in consumption and, consequently, oil prices. Now the level of consumption per day is around 100 million barrels, but in the coming months it could be reduced by 10-25%.
Reducing consumption will lead to the fact that all storage facilities, including supertankers, used as additional capacity for storage of raw materials, will be filled with oil.
Glut, oil prices could fall even further. According to some forecasts, the price of Brent crude could fall to $ 10 and below.