Oil price recovery above $50 to be delayed

SourceZawya
SectorOil & Gas
CountryGulf

Gulf countries face a challenging few months in balancing their economies with oil prices likely to remain under pressure and a price recovery above $50 per barrel not expected before the end of the year, Saxo Bank said on Wednesday.Ole Hansen, Saxo Bank's head of Commodity Strategy, said declining global energy demand affected by Covid-19 travel restrictions, rapidly mounting oil supplies in storage facilities and Saudi Arabia's reduction in its oil-exporting price are the key factors likely to keep the price of oil below $ 50/barrel until 2021."Crude oil has been trading in a fairly stable pattern in the low $ 40s since June, however we are seeing evidence in data from the physical market that there are risks emerging. Weak refinery margins, caused primarily by the excess of unwanted ...read more...