Swiss UBS revises oil price forecast amid coronavirus
BAKU, Azerbaijan, Feb.21
By Leman Zeynalova - Trend:
Swiss UBS investment Bank has revised its oil prices forecasts for 2020 amid coronavirus by $6 per barrel and $3.5 per barrel for Q1 and full year, Trend reports citing UBS.
The bank now forecasts Brent to average $56 per barrel during the first quarter and $60 percent over the full year.
UBS has also revised down its 2020 global oil demand forecast by or 0.4 percent, saying that coronavirus has added a new negative dimension to oil markets
Chinese oil demand will likely average 12.1 million b/d during the first quarter, a 1.3 million b/d, or 10 percent downward revision to its previous estimate, UBS said, as quoted by S&P Global Platts.
Later in the year, however, weaker effects from the US-China trade dispute, stabilizing demand, expected OPEC action to trim more output and slowing US growth will see the oil market tighten, UBS said.
As a result, the bank saw Brent prices recovering above $60/b in the third quarter but remaining near the lower end through the year.