Now published: Quarterly Oil Market Outlook April'20
In the Quarterly Oil Market Outlook we look at fundamental, geopolitical and financial influence on oil price development over the coming quarter and we find that the coming period could continue to see heavy oil price volatility as coronavirus pandemic and oil price war remain in centre stage.
The last quarter has seen some of the most volatile times in the oil markets in recent history as the coronavirus has affected global demand for oil while tensions between large oil suppliers have contributed to large changes in supply.
In the short term, we expect oil prices to remain low as oversupply and lack of demand rule the oil market, but later this year, demand is expected to pick up as the world heads towards "normal" following the coronavirus pandemic effects and potentially a production cut deal between major oil producers which will likely result in increasing oil prices.
At time of writing this outlook, there is some news suggesting this production cut might come soon, but the volume and timing remains uncertain right now. With potentially 15-20 mio. barrels per day drop in global demand for oil due to the coronavirus pandemic, the world would need a substantial production cut, even if some production is absorbed by filling strategic reserves around the globe.