Oil prices slumped by more than 2% on Tuesday, as concerns the coronavirus outbreak could hinder the Chinese economy and led to slowing demand in the world’s biggest crude importer persist. The International Energy Agency said last week that global oil demand in the first quarter of 2020 is likely to contract year-on-year for the first time since the financial crisis in 2009. Keeping a floor on prices were expectations that major oil producers would extend the current oil production cut agreement or even make deeper curbs to support the market. US crude oil dropped as much as 2.1% to $51.44 a barrel while Brent fell nearly 1.6% to $56.69 a barrel around 10:00 AM London time.
Historically, Crude oil reached an all time high of 147.27 in July of 2008.
Crude oil is expected to trade at 52.82 USD/BBL by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 56.81 in 12 months time.