Bank of America Brent crude is expected to drop temporarily to the range of $ 20 due to the price war | latest news

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Bank of America Global Research has joined other banks in lowering crude price expectations, speculating that Brent will fall to the $ 20 range in the coming weeks after Saudi Arabia launched a price war on the backdrop of OPEC’s failure to reach a deal to cut production.

Today, oil prices lost up to a third of their value in their biggest daily fall since the Gulf War in 1991, after Saudi Arabia lowered the official selling price of its oil and announced plans to increase crude production significantly.

Bank of America analysts wrote in a note yesterday, Sunday, “Reducing the price discount compared to domestic crude oils such as West Texas Intermediate, Brent and the Urals aims to support the demand for Saudi crude while the Corona virus paralyzes large parts of Asia and Europe.”

The bank cut its price forecast for 2020 to $ 45 a barrel from Brent crude instead of $ 54 and to $ 41 a barrel for West Texas Intermediate from $ 49 earlier. It is the second time this month that the bank has cut back its forecast for oil prices.





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