Oil prices will remain very low in 2Q20 but will recover in 2H20
HOUSTON, April 28, 2020 — The Oil Prices Outlook for April 2020, published by BBVA Research, indicates that oil prices will remain very low in the second quarter of 2020 but are likely to recover by the second half of the year as the worst of the pandemic is left behind
The report, authored by BBVA principal economist Marcial Nava, states that prices will remain subdued even though the global economy will be boosted by fiscal and monetary support. Though demand is also likely to recover in 2H20, it will remain weak as the global economy takes time to return to pre-COVID19 levels.
The implementation of OPEC+ cuts is subject to a high degree of uncertainty, as only a few countries can comply with their quotas in a short period of time. Instead, most countries will let their production decline organically, which could take several months.
Led by Nathaniel Karp, BBVA Compass’ research team analyzes the U.S. economy and Federal Reserve monetary policy. For its analyses, the economists create models and forecasts for growth, inflation, monetary policy and industries. The Economic Research team also follows a variety of issues that affect the Sunbelt states where BBVA Compass operates. Follow their work on Twitter @BBVAResearch and @BBVACompassNews.
Read the full report here.
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