OPEC and its allies including Russia agreed to cut oil production on April 9th 2020, amid a slump in global demand after the coronavirus pandemic led to lockdowns and business closures and aimed at ending the price war between Riyadh and Moscow. However, the agreement did not include other oil producers such as the US, and Mexico exit talks, threatening the final deal. Negotiations with Mexico will continue on Friday. Crude oil production will be cut by 10 million barrels per day starting on May 1st and until June 30th; by 8 million barrels per day from June to December; and by 6 million barrels per day from January of 2021 through April of 2022. WTI crude ended the session more than 9% lower at $22.76 a barrel, after jumping more than 12% earlier. The Brent crude dropped more than 4% to $31.48 a barrel after hitting $36.4. On the week, US crude prices declined 20% and Brent 8%. US markets for commodities will be closed on the Good Friday.
Historically, Crude oil reached an all time high of 147.27 in July of 2008. Crude oil - data, forecasts, historical chart - was last updated on April of 2020.
Crude oil is expected to trade at 22.05 USD/BBL by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 18.97 in 12 months time.