Brent crude is expected to drop to $ 20 in the second quarter

According to Reuters, Goldman predicted a record decrease in global demand of 1.1 million barrels per day this year due to the implications of the Corona virus outbreak on economic growth.

At this level, the price of Brent crude will be at the lowest level since February 2002. Oil prices fell again on Wednesday, as Brent traded near $ 28.50 a barrel by 0558 GMT.

The bank said in a note dated March 17th that such a decline would be ... in line with the previous big downward trend in the markets in 1999, 2009 and 2016.

The bank added that the damage caused by the virus may reach a peak in late March at eight million barrels per day, expecting a surplus in supplies of 3.9 million barrels per day and 5.7 million barrels per day in the first and second quarters, respectively.

The bank added that while global storage capacity, including the US strategic reserve, may be absorbed at about 1,100 million barrels, this surplus, the speed of accumulation of future stocks will certainly overwhelm the ability to fill the stock.

However, the bank added that, on the other hand, the decline in supplies and the recovery of demand may lead to a deficit in the oil market of 1.5 million barrels per day by the fourth quarter, and kept its expectations for the price of Khambrent in the third and fourth quarters unchanged at 30 and 40 dollars per barrel, respectively.

Shale oil production is expected to decline 0.75 million barrels per day on an annual basis by the fourth quarter, with production of two high-cost producers, with the exception of the Organization of Petroleum Exporting Countries (OPEC), Russia and other shale oil producers, likely to drop by 0.6 million barrels per day on an annual basis. In the same period.