Experts say the oversupplied oil market will not start to return to normalcy until around third and fourth quarters of this year.

Oil prices have crashed since the outbreak of the coronavirus late last year in China. The market has again suffered glut leading to shortages of storage, leading to further relapse in Brent.

Hope went up with the OPEC+ new agreement back in March, however, the 9.7 million barrels per day cuts came too late to save prices from further tumbling.

Now, experts say prices market won’t rebalance until the last half of 2020.

According to Mohamed Arkab, Energy Minister of OPEC’s rotating president Algeria, oil prices will hit $40 per barrel at the quarter of the year.

International Brent as at Sunday traded at $26.62 per barrel.

He explained that oil prices may recover faster than expected post coronavirus pandemic, adding that there would be a gradual lifting of lockdowns around the world in the second half of the year.

“Together with the 9.7 million bpd cuts, OPEC and its allies pledged for May and June, these factors are set to lift the price of oil in H2 2020” Arkab said.

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Source: SweetCrudeReport