Oil 2020: Analytics and Forecast
In 2019, oil quotes floated significantly. When OPEC+ participants agreed on an additional production cut, the price of Brent has exceeded 65 USD per barrel. In 2020, prices will be determined by production volumes and the new rules of the International Maritime Organization.
In September, the oil prices jumped sharply due to drone attacks on Saudi oil infrastructure. After a couple of weeks, they returned to their previous level. By December, Brent was at 65 USD due to the OPEC + meeting. This should contribute to the stability of oil prices in the first half of 2020.
In the first half of 2020, analysts expect the average oil prices to stay 64 USD. However, some experts point out that despite the efforts of the OPEC countries the production will increase and demand will decrease due to the decline in car production in many countries. Qatar, Brazil, and Norway continue to boost oil production. From January 2020, the new rules of the International Maritime Organization come into force prohibiting the use of fuel with a sulfur content above 0.5 percent in seafaring. This factor can also increase the demand for raw oil materials.
Most expert do not mention any factors that could greatly affect the oil prices in 2020.