Page 29 - Policy_Economic_Report_September2020

Policy and Economic Report:
Oil & Gas Market

Table 1: Crude oil price in August, 2020

Crude oil Price ($/bbl) MoM YoY
in August 2020 (%) change (%) change
Brent 44.30 3.5% -25.5%
WTI 42.40 3.9% -22.7%
Dubai 43.70 2.6% -25.8%

Source: WORLD BANK
Oil Prices Decline as Rising Covid-19 Cases Stalls Recovery

September month had two different phases for the crude oil benchmarks. First fortnight of the month
saw a decline in crude benchmarks due to decline in demand for crude oil. Second half saw a minor
recovery in the crude prices as the crude inventory draw went up. While demand recovery fared better
against the estimated decline in OECD Americas and OECD Europe, it performed below expectations in
other region. Slowdown in economic and industrial activity across the major markets led to downward
assessment for crude demand forecast.

Recovery of demand for crude in Asian nations like India, Thailand, and Indonesia was poorer than the
forecasted recovery. Average Brent, WTI and Dubai basket crude prices in September declined by 3.81 %,
6.44 % and 4.46 % respectively from their August prices.

Figure 2: Crude oil price in September 2020

55.00

45.00

35.00

25.00

WTI (Nymex) Brent (ICE) Dubai

Source: EIA, Oilprice.com, PPAC

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September 2020