Corona mixed the papers with the oil market ... these are the expectations of crude prices in 2020

Bank of America Global expects the average price of a Brent barrel to be $ 62 in 2020, supported by voluntary and involuntary declines in OPEC supplies, at a time when Saudi Arabia expects the impact of the spread of the Corona virus on global oil consumption to be short-term.

Bank of America pointed to temporary declines in prices during the first quarter of 2020 due to the outbreak of the new Corona virus, amid restrictions implemented by many countries of the world to prevent the spread of it on their lands.

Countries such as Iraq, Kuwait, Turkey, Jordan, Israel and countries in the European Union have implemented measures and restrictions on their borders to prevent the virus from entering its territory through citizens of countries where the virus has spread, such as China, South Korea and Iran.

The bank expected - in a report - that Brent crude would average an average of 50-70 dollars a barrel until 2025. It also expected the growth of total US production of crude oil and liquids from 17.3 million barrels per day in 2019 to 20.9 million barrels per day in 2025.

Oil rose on Tuesday as investors sought to hunt deals by buying crude at cheap prices, after tumbling nearly 4% in the previous session. However, fears that the spread of the Corona virus outside China will affect major economies and that the demand for fuel will be curbed.

And global benchmark crude increased 0.3% to $ 56.49 a barrel in early trading, while US crude futures lost 0.3% to drop to $ 51.60 a barrel, compared to a decrease of 3.7% in the previous session.

"The spread of the epidemic in Italy and South Korea is putting oil prices under pressure," said Carsten Fritsch, an analyst at Commerzbank Bank.

Saudi optimism
Saudi Energy Minister Prince Abdulaziz bin Salman said today, Tuesday, that OPEC Plus should not complain about the Corona virus, and expressed confidence that every member of the group is a responsible and responsive oil producer.

Meanwhile, Saudi Aramco CEO Amin Al-Nasser said on Monday that the company expects the impact of the Corona Virus on oil demand will be short-term, and consumption will rise in the second half of the year.

He added that Aramco - the world's largest oil producer - did not withdraw its employees from China, and that its main marketing crews remained there to manage the company's activities.

But the Institute of International Finance said a few days ago that the outbreak of the Corona virus may undermine the demand for oil in China and other Asian countries, which would push oil prices for further decline that could reach it to $ 57 a barrel and cast a shadow on the growth prospects across the Middle East.

"Before Corona, we assumed that oil prices would average $ 60 a barrel this year compared to $ 64 last year. (But) we are very likely to adjust our forecasts for the whole year, and it may be (Prices are at) $ 58 or $ 57 depending on Corona virus developments. "

Corona virus has infected about 77,000 people and claimed more than 2,500 lives in China.

OPEC Plus will meet next March 5 to discuss steps in the face of lowering oil prices and reducing global stocks, to avoid a further drop in the coming period, with signs of severe oversupply emerging.