According to analysis by a risk assessment firm based in the US, oil prices are likely to remain low in the coming two years as recession and unknown take on-demand being among the top causes.
Whereas Brent, the global crude benchmark for this year and next year is expected to go low, net importers of petroleum in Kenya will get a chance in the market, according to Moody’s Investors firm.
Brent oil prices will be an average of $35 per barrel this year and $45 in 2021 according to a prediction by the firm.
“Exceptionally weak short-term prices will persist until production drops enough to ease the strain on storage facilities already operating at or close to full capacity. Significant supply adjustments in due course should help to balance the market later in 2020. Still, the pace of the market’s rebalancing and rising oil price will depend on demand recovery,” said Elena Nadtochi, Moody’s Senior Credit Officer.