The bank says it expects production cuts, coupled with a recovery in demand, to rebalance the oil market in the second half of the year.
Prices are likely to be very low in the second quarter, as volatility will likely remain very high.
The bank also expects that Brent prices will record a range between 15 and 25 dollars a barrel in the largest part of the second quarter.
According to his forecasts, that before the WTI contract for June expires shortly in four weeks, “we may see renewed unrest and negative prices.”
Otherwise, he says, WTI crude may trade mainly in the range of $ 10 to $ 20 a barrel.
On the other hand, the official Angolan news agency quoted the Minister of Resources and Petroleum, Diamantino Azevedo, as saying on Friday that the country expects that the oil production cuts implemented by OPEC and its allies and other major producers will not be sufficient to balance the global markets.
“It is up to everyone to realize that … despite the measures taken by OPEC, oil producers in many countries must realize that they may be called upon to take tougher measures,” Azevedo said.
“Given the lack of storage capacity, the continuation of production becomes unjustified,” he added, noting the dwindling ability of global oil consumers to store oil that is not needed in light of economic constraints due to the Corona virus.
Brent prices average $ 37 a barrel in 2020, and WTI is $ 31 a barrel.
Merchants are currently scrambling to find storage places, until it came to storage in caves, trains and unused oil pipes.
With the producers struggling to provide additional storage space, some were forced to look for buyers to receive money for the surplus oil, so the loss was doubled.
Oil trading has witnessed major fluctuations in the past few days. A growing glut in market supply continues, with a sharp drop in demand, amid orders from governments for people to commit to their homes to stem the spread of the emerging corona virus.