Oil prices will remain very low in 2Q20 but will recover in 2H20 – BBVA

According to the Research Department at BBVA, OPEC+ and G20 output deal to cut production won’t be enough to compensate for the expected decline in global demand for crude oil. 

Key Quotes: 

“Oil demand is likely to remain subdued through the rest of the year as the economy won’t return to pre-crisis levels until 2022.”

“The implementation of OPEC+ cuts is subject to a high degree of uncertainty Only a few countries can comply with their quotas in a short-period of time Most countries will let their production decline organically, which could take several months.”

“Even though the global economy will be boosted by fiscal and monetary support, prices will remain subdued.”