The end of OPEC? Oil prices could fall to $20 per barrel
Despite the recent rise in oil prices, it is possible that in the near future it could be reduced to $ 20 per barrel, according to a report by Citigroup.
Although in recent weeks the global downturn in spending has caused the oil prices to rise, oil production continues to reach record levels and the market is oversupplied, said Edward Morse, head of commodities research at Citigroup in a report, which appeared in the Financial Post.
As a result of oversupply and a consequent saving of storage, the West Texas Intermediate (WTI), currently trading at $ 52, can be reduced to less than $40, or even $20 a barrel "for a while".
"It is becoming less likely that OPEC will get back to their old ways of doing business," writes Morse. "While many analysts have seen in previous market crises 'the end of OPEC', this time could be different," he noted.
It is estimated in the report that the price of oil should reach its minimum at the end of the first quarter and early in the second, hovering around $ 40 a barrel. From that moment, the market should begin to balance.