S&P Ratings slashes crude oil forecast for 2020 by $10 per barrel – The National

S&P Ratings slashes crude oil forecast for 2020 by $10 per barrel – The National

S&P Ratings slashes crude oil forecast for 2020 by $10 per barrel. With global air travel coming to a halt following various border control measures enforced by governments to contain the pandemic, demand for jet fuel, which typically accounts for 8 to 10 per cent of global oil supply has had "an immediate demand impact", the agency said in its report.. Saudi Arabia is expected to bring an additional 2.6m bpd of supply to the markets in April, raising its overall supply for the month to 12.3m bpd.. The UAE is set to increase output by a million bpd to 4m bpd next month.. Talks collapsed as Russia, the biggest producer in the alliance, remained sceptical about the impact of the pandemic on oil demand.. Saudi Arabia had asked for a 1.5m bpd of more cuts on top of the 1.7m bpd restrictions implemented by the Opec+ pact.. "Russia and Saudi Arabia's actions are reminiscent of the November 2014 Opec meeting where Opec sparked a price war, deciding to maintain production despite oversupply conditions due to increasing oil production from the US," S&P said.. The agency does not expect US production to decline immediately due to hedges and previously drilled