empty
 
 
26.06.2020 02:40 PM
Second wave of COVID-19 horrifies oil market

This image is no longer relevant

Today, there are two main problems in the oil market. The first one is a huge surplus in oil stockpiles. Moreover, the situation is deteriorated by fears of the second wave of coronavirus.

Chris Midgley, a director of S&P Global Platts Analytics, assumes that oil demand will rise by 4 million barrels per day each month until the end of August amid the economic recovery. However, in September, the growth rate may slow down to 1 million barrels per day amid the seasonal recession. In other words, the world could face oversupply again in autumn.

OPEC + participants have achieved a result. The implemented measures have removed 14.5 million barrels per day from the market. Nevertheless, experts doubt that Iraq and Nigeria will continue to comply with the terms of the deal and fulfill their obligations.

Moreover, rising oil prices have encouraged some US companies to increase production. In this regard, the US oil market has more or less stabilized, but the country is afraid of the arrival of the second wave of COVID-19.

Platts Analytics experts suggest that "black gold" prices will remain in the range of $35- $45 per barrel in the near future. However, for many oil producers this range is hardly acceptable.

Mercuria's head Marco Dunand noted that Saudi Arabia, the United States, and non-OPEC oil producers are ready to raise prices above $40 per barrel.

Kate Smirnova,
Analytical expert of InstaForex
© 2007-2024
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

Can't speak right now?
Ask your question in the chat.
Widget callback