Despite the topsy-turvy oil prices in the past week caused by the killing of Iranian General Qaseem Soleimani by the U.S. army, prices of oil are still set to decline further. This due to the fact that though the U.S. and Iran traded missile attacks the flow of oil barrels to the market has not been affected. Add to this the further pressure on OPEC to implement measures to further cut production in order to keep the Brent oil prices at around $60 per barrel through 2020.
According to Bjørnar Tonhaugen, Head of Oil Market Research at Rystad Energy, there had been steady surplus in oil balances as opposed to a deficit.
Rystad Energy also forecasts that the market demand for OPEC oil will average about 28.3 million bpd or barrels per day for the final months of 2020.