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Oil prices will hover around $ 63 and US-China deal expected to accelerate growth

by Bunkerist
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It is hoped that oil prices will hover around $ 63 per barrel in 2020, and the U.S.-China trade deal could accelerate economic growth.

According to the survey, which was attended by some market analysts, it is hoped that oil prices will hover around $ 63 per barrel in 2020 as a result of the deeper production cuts of OPEC and its allies, and the US-China trade agreement will accelerate economic growth.

Brent crude oil is estimated to be an average of $ 63.07 per barrel in 2020, slightly less than the previous month’s forecast of $ 62.50.

Brent prices have increased approximately 24% in 2019 so far, and a modest recovery has continued due to supply cuts by allies like the Petroleum Exporting Countries and Russia.

The group agreed to increase supply cuts from 1.2 million barrels (mbpd) to 1.7 mbpd earlier this month in the first quarter of 2020.

The International Energy Agency (IEA) sees that total US oil production growth fell from 1.6 mbpd this year to 1.1 mbpd in 2020.

For the first time since 1999, as the producers decreased the number of oil platforms operating in the fourth quarter in a row, the production growth rate of the USA is decreasing.

US WTI raw futures are estimated to be $ 57.70 a barrel next year, from a forecast of $ 57.30 last month.

Threat symptoms in the US-China trade war are expected to increase by 0.9-1.4 mbpd in 2020.

Analysts stated that the new regulations in favor of the International Maritime Organization (IMO) in favor of the low sulfur fuel oil that entered into force on January 1, 2020, will be another dominant factor that triggered the increase in demand next year.

OPEC and its allies have been hiding their collective output since 2017, and Russian Energy Minister Alexander Novak said on Friday that OPEC + countries might consider stopping braking oil production in 2020.

While most are optimistic about oil prices recently, none of the surveyed analysts expects Brent prices to exceed $ 75.60 in April, the highest in 2019.

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