Crude oil prices are likely to settle into $50-$70 range through 2020 but volatility will continue, Moody’s noted in its latest report on Tuesday.
“Recent volatility reflects concerns about a weakening global economy, higher Saudi and Russian production, demand destruction tied to the strong US dollar and tariffs, mixed signals on Iran sanctions, and financial speculation,” Moody’s report added.
Moody’s said last week’s announced production cuts by OPEC and Russia will contribute to more balanced global supply and demand, and help to stabilize oil prices.
The report said among the key issues impacting oil prices in 2019 will be slowing global demand growth tied to generally weaker economic growth, and, in emerging markets in particular, the strong US dollar; and whether OPEC and Russia will maintain production discipline.
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