Oil price news

Rystad Energy has issued its daily market comment on oil prices.

Rystad Energy's Oil Markets Analyst Louise Dickson has said that WTI June 2020 deliveries could also be on their way into the red.

Rystad Energy's Head of Oil Markets, Bjornar Tonhaugen, has commented on the recovery of oil prices from negative levels yesterday.

The world's leading oil producers reached a deal over the weekend to cut global output by approximately 10%.

According to an impact analysis from Rystad Energy, E&P companies are likely to reduce project sanctioning by up to US$131 billion, or about 68% y/y.

Oil prices could fall into the low US$20s for the global market to rebalance, as Rystad Energy expects an increase in global supplies in the next three months.

The move, beginning from April, is in response to the oil price war between Saudi Arabia and Russia.

The price war will heavily impact service company revenues, even driving some out of the market, according to Rystad Energy.

A Rystad Energy impact analysis shows that US drilled but uncompleted wells will be the first assets to be threatened by the newly formed low price environment, as their breakeven costs are now only dollars away from market prices.

Rystad Energy now expects more than half of global oil demand growth to be lost in 2020.