Today, Citigroup investment bank analysts have released updated forecasts regarding the prospects for oil prices in the current year.
From the updated material, it follows that on average this year the barrel of oil of the Brent reference grade will be valued at $70. According to the results of the second quarter, Brent is expected to cost $69 per barrel, which is $9 more than the previous assumption.
Based on the forecast, the barrel will cost $74 in the third quarter and above the previous expectation by 11 dollars.
In Q4, the price is expected to decline to $72 and the forecast is $5 above the previous estimate.
According to the results of Q1 2020, Brent will be valued at $ 65 per barrel.
Explaining the upward revision of the forecast, the experts identified among the reasons for the further decline in oil supply from Iran, Nigeria, Algeria, and Venezuela, as well as the continuing reduction in stocks of raw materials in consuming countries. In Venezuela, where recently a large-scale blackout paralyzed the country's economy, the risks of a repeated power outage remain. In addition, the United States can tighten sanctions on oil exports from Iran.
As a result, the cost of futures for May on Brent crude oil sank by 0.18%, amounting to 68.92 dollars per barrel at around 10:25 London time.The material has been provided by InstaForex Company - www.instaforex.com