2020-03-09 07:25:18

Shafaq News / OPEC and Russia have started an oil price war that could push crude up to $ 20, according to Goldman Sachs Group.

Economic analysts wrote in a report prepared by "Bloomberg" agency that Brent crude may drop to $ 20 a barrel, and test the levels that some producers can work. The bank said that this move completely changed the expectations of oil and gas markets, as it reduced its forecasts for the second and third quarters to $ 30 a barrel.

"We believe that OPEC and Russia oil price war started unambiguously at the end of this week," the analysts said. "The estimate of the oil market is more severe than it was in November 2014, when this price war finally started, reaching its climax with the massive collapse in oil demand due to Corona virus."

OPEC and its allies failed to reach an agreement to prolong production cuts last week, so they shot a price war that had already sparked prices. Over the weekend, Saudi Arabia lowered official selling prices, while the kingdom also plans to raise production to over 10 million barrels per day.