Today, Barclays Bank cut its oil price forecast for 2020, indicating significant downward pressure in the market caused by the price war and the disruption of demand due to the Corona virus.
The bank reduced its price forecast for Brent and West Texas Intermediate by $ 12 to $ 31 and $ 28 a barrel, respectively.
"Prices are likely to remain under pressure until the situation in relation to the virus improves," analysts with the bank wrote in a note.
Barclays is joining other banks in lowering its oil price forecasts based on the collapse of an agreement to curb production between members of the Organization of the Petroleum Exporting Countries (OPEC) and allies, or what is known as "OPEC +", as well as demand affected by the virus.
Barclays also expects the global available storage capacity on the ground to be around 1.5 billion barrels. It is estimated that the surplus in supplies will exceed five million barrels per day this year and average 10 million barrels per day in the second quarter.