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HSBC downgrades Brent crude oil price forecast from $80 to $64

Experts HSBC Holdings plc. worsened the forecast for the price of Brent crude from $ 80 to $ 64 per barrel for 2019 due to an increase in the US production.

The forecast for the price of WTI crude oil was also reduced from $ 74 to $ 57 per barrel.

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HSBC analysts expect that OPEC will adhere to a restrained approach to production and the average oil production in the current year of the countries of the organization will be 31.6 million barrels per day.

According to the HSBC analytical review, the growth rate of oil production in the United States is highly dependent on prices on the international oil market. At a cost of Brent ranging from $ 0 to $70 per barrel, American oil production will grow by 0.8 million barrels per day.

In addition, experts believe that in the second half of the year, the price of oil will receive additional support from the entry into force of a new standard for sulfur content in marine fuels - IMO-2020.

On Tuesday at 10:00 London time, the cost of the March futures for Brent crude rose by 0.68% to $ 59.39 a barrel and WTI futures for February delivery rose in price by 0.65% to $ 50.84 a barrel.

The material has been provided by InstaForex Company - www.instaforex.com