Page 28 - Policy_Economic_Report_September2020

Policy and Economic Report:
Oil & Gas Market

Oil Market

Crude oil price

In the month of August, top global crude benchmarks stabilized in the range of USD 40-45 per barrel due
to slight demand recovery and gradual opening up of economies worldwide. Production cuts of 7.7 mbpd
from August by OPEC plus allies led to tightening of the market. Recovery in Asian region led by China
helped in managing the extra production resulted due to the relaxation of production cuts. Stricter
production cut compliance is expected to hold the crude prices for near term.

Average Brent, WTI and Dubai basket crude prices in August went up by 3.5 %, 3.9% and 2.6 % respectively
from their July prices.

Figure 1: Benchmark price of Brent, WTI and Dubai crude

100

75

50

25

0

Brent Spot Price ($/bbl) WTI Spot Price ($/bbl) Dubai spot price ($/bbl)

Source: WORLD BANK

 Brent crude price averaged $ 44.30 per bbl in August 2020, up by 3.5 % on a month on month (MoM)
but down by 25.5 % on year on year (YoY) basis, respectively.

 WTI crude price averaged $ 44.40 per bbl in August 2020, up by 3.9 % on a month on month (MoM)
but down by 22.7 % on year on year (YoY) basis, respectively.

 Dubai crude price averaged $ 43.70 per bbl in August 2020, up by 2.6 % on a month on month (MoM)
but down by 25.8 % on year on year (YoY) basis, respectively.

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September 2020