Bloomberg: the Price of a barrel of Brent crude could fall to $47

The oil market is under pressure.

The spread of the coronavirus type 2019-nCoV has led to a sharp reduction in oil demand in China, RBC reports with reference to Bloomberg. According to sources of Agency familiar with the energy market, the daily oil consumption in China has decreased by about 3 million barrels, that is 20%.

On the impact of coronavirus on the world oil market and said the head of the Ministry of oil of Iran Bijan Namdar Zanganeh, reported IRNA. According to the Minister, the spread of infection in some cases led to the shutdown of several production facilities and closure of transport that became the reason of falling of demand for oil. Zanganeh noted that the decline in demand in terms of conserving suggestions always leads to falling prices.

“The oil market is under pressure, prices fell more than $5 per barrel, the necessary efforts in order to balance the situation,” — said the Minister, noting that Iran in connection with the entered against it sanctions will not negotiate on the reduction of production.

Bloomberg said that since January 20, when the spread of the coronavirus in China was perceived as a threat to the global economy, oil prices fell by 13%. 27 of January the price of a barrel of Brent for the first time since the autumn of 2019 fell below $60, and for 3 February — below $55,5. Thus, compared to the 20 January, the price fell nearly 15%.

Analysts at Citigroup lowered the forecast average price of Brent crude in the first quarter of 2020 from $69 to $54. In this case, the minimum price per barrel, the forecast could drop to $47, that will be the worst result for two and a half years.

22 Jan Goldman Sachs analysts predicted that oil consumption due to the coronavirus could be reduced by 260 thousand barrels per day, including from-for falling of demand for aviation fuel by 170 thousand barrels. Experts warned that as a result, a barrel of Brent could fall by almost $3, but the reality has surpassed forecasts.