An American bank predicts that oil will not be released from the negative consequences of the Corona virus outbreak before the end of the third quarter in 2020.
Bank of America Citigroup downgraded its forecast for oil prices and he said the consequences of the Corona virus would be worse than initially expected, Bloomberg reported.
Citigroup analysts, including Edward Morse, reported lower oil prices in the first nine months of the year2020.
The mentioned reporter said the Chinese government’s measures amounted to a massive shutdown of its economy, and even as the Organization of Petroleum Exporting Countries (OPEC) and its allies tighten production, it will weaken the oil market.
Citigroup declined its estimate of the price of Brent crude in the first quarter of the year 2020 from $ 69 to $ 54. The mentioned bank also warned that the price could fall to about $ 47.