OCBC Treasury Research sees Brent ending 2020 near US$50

However, OCBC Treasury Research said Libya remains a key risk to its supply assumptions. The African country has seen its production fall 1.7mbpd to almost nothing over the ensuing civil war. Should this 1.7mbpd return to pipelines, the oil market would easily flip back into a supply surplus.

KUALA LUMPUR: OCBC Treasury Research estimates Brent crude oil to finish 2020 close to US$50 a barrel following the extended supply cuts by Opec+ by a month to July 2020.

The research house said on Tuesday the current output reduction of 9.7 million barrels per day (mbpd) was expected to expire this month; the months of July to December would only see a production reduction of 7.7mbpd.