This archive report was first published on 10 May 2020.
Low oil prices are expected to persist for the next two years, according to a recent analysis by Moody's Investors Service.
As of 2020, the global economy is experiencing a recession, leading to uncertain demand for oil. This has resulted in oil prices remaining low, with Brent prices averaging $35 per barrel in 2020.
Moody's predicts that Brent prices will continue to be low in 2021, averaging $45 per barrel. This is due to the ongoing recession and uncertain demand for oil.
According to Moody's Senior Credit Officer Elena Nadtotchi, "exceptionally weak short-term prices will persist until production drops enough to ease the strain on storage facilities already operating at or close to full capacity."
Reduced oil production is expected to lead to slight adjustments in prices. Exporting countries have agreed to cut production to reduce oversupply.
Published on Sunday, May 10, 2020 22:00 by Edwin Okoth.
