• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 18 hours How Far Have We Really Gotten With Alternative Energy
  • 23 hours Bad news for e-cars keeps coming
  • 9 days For those of you who are full of __it.
What Does ConocoPhillips’ Marathon Acquisition Mean for the Permian?

What Does ConocoPhillips’ Marathon Acquisition Mean for the Permian?

ConocoPhillips and Marathon Oil announced…

Armenia Courts Western Allies as Relations with Russia Deteriorate

Armenia Courts Western Allies as Relations with Russia Deteriorate

Armenia's relationship with Russia faces…

Standard Chartered Slashes WTI Oil Price Forecast To $32

Expecting a fierce and protracted oil price war, Standard Chartered slashed on Monday its oil price estimates for this year and next, saying WTI Crude prices would average $32 a barrel in 2020.

The bank cut its outlook on WTI Crude from $59 a barrel it had previously expected.

At 2:15p.m. EDT on Monday, WTI prices were trading at $32.39 a barrel, down by 21.5 percent on the day for the biggest one-day crash since 1991, after Saudi Arabia fired the first shot in an oil price war with Russia, following the disintegration of the OPEC+ coalition which failed to agree on a production cut deal on Friday.  

For 2021, Standard Chartered expects WTI Crude prices to average $41 a barrel, down from its previous estimate of $63.

The bank also slashed its projection for the average Brent Crude price in 2020 and 2021. Standard Chartered now sees Brent prices averaging just $35 a barrel this year, down from $64 per barrel previously expected. Next year, Brent Crude should average $44 a barrel, down from $67 expected just days ago.

“With supply ramping up at the same time as coronavirus-related demand losses reach their maximum, the short-term floor to oil prices is extremely weak,” Standard Chartered said in a note, as carried by Reuters.

Standard Chartered wasn’t the only bank that slashed its oil price outlook in the near term after the Saudi-Russia oil bromance abruptly ended at the end of last week.

The oil market has entered yet another New Oil Order with the price war, with US$20 Brent Crude a real possibility in the coming two quarters, Goldman Sachs said on Monday.


“US$30/bbl here we come,” ING’s Head of Commodities Strategy Warren Patterson said on Sunday as ING analysts slashed their Q2 Brent Crude forecast to $33 a barrel from $56, and the Q2 WTI Crude estimate to $28 per barrel from $50.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News