World Bank downgrades oil price forecast for 2020 to $ 58/ barrel

TASS Russian News Agency | Dec 4, 2019 at 2:48 PM

MOSCOW, December 4. / TASS /. The World Bank has lowered its oil price forecast for 2020 to $ 58 from $ 65 per barrel, the bank said in a report on the Russian economy on Wednesday.

"Some reduction in crude oil prices (weighted average for Brent, WTI and Dubai) is projected from $ 60/ barrel in 2019 to $ 58 in 2020 - a significant adjustment down compared to the April forecast ($ 65 per barrel)," the report says .

It is also indicated that for the period from January to September 2019, oil prices fell by 14% in annual terms against the backdrop of a slowdown in global economic growth.

The expected volumes of demand for 2019 and 2020 are revised down taking into account the reduced forecast for global growth. Regarding the supply, despite the modest growth in production in the USA in 2019, it is expected to grow significantly by 2020 due to the commissioning of new oil pipelines," the report says.

The forecast assumes that the OPEC + agreement on the reduction of oil production will be valid in 2020.