World Bank Cuts Oil Price Forecast for 2020 to $35 per Barrel From $58 Expected in October

On 12 April, the Organisation of the Petroleum Exporting Countries (OPEC) and its allies agreed to reduce oil production by 9.7 million barrels per day in May and June, followed by 7.7 million per day for the second half of the year, and then by 5.8 million per day until April 2022.

The World Bank has cut the oil price forecast for 2020 to $35 per barrel from $58 per barrel expected in October.

Earlier in the day, trading data showed that the price of West Texas Intermediate (WTI) oil surged by 18 percent, with the growth briefly reaching 20 percent.

On 20 April, the price of WTI crude for delivery in May fell into negative territory for the first time in history, meaning that investors would theoretically pay people to cart away excess supply. WTI finished at around negative $37 per barrel.

The COVID-19 crisis has shattered the demand for oil in the world, with many countries subject to stay-at-home orders, flights grounded, and roads nearly devoid of traffic.

On 11 March, the World Health Organisation declared the COVID-19 outbreak a global pandemic. According to Johns Hopkins University, more than 2.6 million people worldwide have been confirmed infected with the coronavirus disease. The global death toll stands at 184,643.