European Commission sharply lowers oil price forecast 2019-20

07.02.2019,17:19


February 7, Fineko/abc.az. The European Commission (EC) has revised its forecast on the average annual price of Brent oil in 2019-20, sharply reducing the estimate to $61 a barrel amid rising production in the U.S. and Canada.

The EC new report says that in the autumn of 2018 the EC expected that the average price of Brent oil will be at $80.6 in 2019 and $76.7 a barrel in 2020.

"It is expected that during the forecast period the oil prices will be constrained by growth of production in the U.S. and Canada and the decline in global oil demand. According to the futures markets, the average price of Brent oil in 2019 and 2020 is expected to be at $61 a barrel. This is 24% lower than it was published in the autumn forecast for 2019 and 20% lower than the forecasts announced earlier for 2020," the EC informed.