The German commercial bank “Commerzbank” expected that oil prices will recover by the end of this year, and that the “Brent” mix will reach 40 dollars per barrel.
The German bank expects that the production cuts accompanied by a recovery in demand will rebalance the oil market in the second half of this year.
He said that prices are likely to be very low in the second quarter, as volatility will likely remain very high, as it is expected that the prices of “Brent” range between 15 and 25 dollars a barrel.
The bank warned of turmoil in the oil market in the coming weeks, and said: “Before the West Texas Intermediate contract expires in June, we may see renewed unrest and negative prices.”
Oil markets are under pressure due to falling demand for crude due to the decline in economic activities due to the Corona pandemic, and the fullness of international oil depots.