The bank explained in a report yesterday, Monday, that the price war that was fueled by the collapse of an agreement between the Organization of Petroleum Exporting Countries (OPEC) and other producers will likely be severe and long.
The bank has cut its average forecast for Brent crude for 2020 to $ 35 a barrel from $ 64, and cut its average forecast for crude for 2021 to $ 44 a barrel from $ 67 a barrel at a time Previous.
Regarding US West Texas Intermediate crude prices, the bank cut its forecast for 2020 to $ 32 a barrel from $ 59, and its forecast for 2021 to $ 41 a barrel from $ 63.
A three-year agreement between OPEC and Russia collapsed last Friday after Moscow rejected deeper oil cuts.
The bank said that it is expected to increase oil supplies significantly after this failure, noting that the market is not expected to achieve balance before mid-2021 if the price war continues.
Standard Chartered analysts expect Saudi Arabia to increase its crude production to close to 11 million barrels per day in April, and then increase it further to 11.8 million barrels per day by the end of the quarter. Second of 2020.
