Russia’s Central Bank thinks oil prices may drop again, if the pandemic situation fails to improve. According to a report by the regulator, a lengthy pandemic may result in a new wave of restrictions followed by an oil price decline.
The Bank of Russia currently anticipates the oil price at $38 per barrel in 2020 and at $40 in 2021. OPEC+ has been attempting to reduce global supply of oil, but its efforts may turn to be insufficient. At the moment, Brent is traded at over $40 per barrel and, according to forecasts, may go above $45 in the nearest future, fueled by good news from the US where registered daily COVID cases are the lowest over the past month (some 47K).
The next OPEC+ conference is to take place in mid August and may have a further serious impact on the oil price.