If the Middle East does not sustain any new shocks, Brent oil will fluctuate around $55 per barrel amid the coronavirus outbreak, a department chief at Deloitte Alexander Gubarev told RIA Novosti.
“With the view of short-term factors and basic demand-supply ratio, Brend oil price will likely remain at around $55 per barrel, if there are no new shocks in the Middle West,” he said.
According to Gubarev, the oil price has long been under a strong influence of information factors and resellers, at least in the short-term perspective of three to six months.
In early February, the media reported a 20% decline in oil demand over the outbreak of a deadly coronavirus. It made the biggest ever drop since the world economic crisis of 2008-2009.
“At the average daily oil output of nearly 100 million barrels, the 20% decline in prices does not mean that oil consumption also dropped by one fifth or such a decline is expected,” the expert said.
Global oil prices have been pressed by the reports of coronavirus spread across the world. The virus outbreak and quarantine measures pose risks for a whole range of global economic spheres, and they may affect the oil demand.
Meanwhile, the news from the Middle East is somewhat curbing the decline in oil prices. In January, Libya halted oil export from five ports and reduced its usual output almost tenfold (1.22 million barrels daily).
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