Oil traders, who are experiencing a collapse of the market amid the collapse of the deal, OPEC+ and the epidemic of the novel coronavirus, said that the situation may deteriorate and the price of oil falls to $ 20 a barrel or lower, according to Bloomberg.
This forecast was given 18 out of 20 respondents by Agency experts. They expect the price of Brent crude oil will be at around 20 dollars per barrel. The price per barrel of WTI crude oil will be three to five dollars less.
Traders reported that the price of oil has fallen so much that some were forced to buy fuel, to form a stock in the hope of further growth. Other traders believe that prices will continue to decline to a level where manufacturers will cease to make a profit, forcing them to stop production and stop delivery.
Analysts at major banks also believe that the price of oil in the coming months will continue to decline.
18 Mar largest traders made the likelihood of new problems — the overflow of all the world’s oil storage tanks. If the demand for raw materials on the background of the situation with coronavirus will continue to decline, but producers will not cut production, oil will be nowhere to store.
The price of oil began to fall after cancellation of the transaction by OPEC+. Russia has refused to approve an additional restriction of output by 1.5 million barrels per day, explaining that the shortfall in volumes immediately occupy the United States.