Oil demand is forecast to drop by nine million barrels per day until the year-end, Russian Energy Minister Alexander Novak said on Friday. Interfax news agency quoted Novak as saying that the OPEC committee that monitors production conducts monthly review of the crude demand. The OPEC panel predictions show the demand for the crude oil declining by approximately nine million barrels per day until the end of the year, he said. Novak however predicted that the demand would restore its high level next year.
He also expected that the oil prices would range between USD 50 pb and USD 55 pb in 2021. The Russian minister did not rule out possible drastic upward and downward movement of the oil prices. Oil prices largely hinge on a group of factors; technical ones such supply and demand and others of different nature such as geopolitical events.
The coronavirus crisis had pushed the prices of oil to as low as USD 14 pb before the rates rebounded and move up – currently in the range of USD 40 pb.