Crude oil Expected to trade deep in 2020,even after lockdowns ease.

crude oil

Crude oil Expected to trade deep in 2020,even after lockdowns ease.

Oil prices are headed further falls this year even as countries ease restrictions related to the coronavirus crisis.

while output cuts by top producers will do little to fix a supply Glut.

The survey of 45 analysts forecast Brent crude would average $35 a barrel in 2020.

7.5 % below the $38 consensus in a March survey. It has averaged $45 so far this year.

Brent and US West Texas Intermediate crude both below $20 this year.

Brent, the global benchmark, was trading around $25 on Thursday, more than 60 per cent lower than at the end of 2019.

US WTI crude oil, which slipped below zero for the first time ever this month as traders scrambled to sell the May contract ahead of its expiry.

Forecast was to average $31.47 a barrel in 2020 in the latest poll, down from $35.29 in March.

But analysts were divided on whether prices would again fall to negative levels, which means those with oil must pay others to take it.

Buyers are scarce in part because storage sites, such as Cushing in Oklahoma, have little space to store more.

“It feels like high noon on oil markets. Storage close to capacity limits and rapidly filling creates a blistering tension filled with fear about an overflowing market,” said Norbert Ruecker, head of economics at Swiss bank Julius Baer.

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