BUENOS AIRES (Pakistan Point News / Sputnik - 22nd April, 2020) The oil market is in for a slow recovery and will see a barrel of crude at $25 only by the year's end, Ecuador's Energy Minister Rene Ortiz said on Wednesday.
On Monday the price of WTI oil that is due to be supplied in May turned negative for the first time in history by reaching minus $40.32 per barrel. Following that Ortiz claimed that Ecuador is looking into switching to Brent as a price benchmark for its oil.
"The change in oil prices will be a slow one. We expect the year to end with the price of $25 per barrel," Ortiz said in an interview with MaxTVonline broadcaster.
Later in the day, the Energy Ministry said that according to Ortiz's estimates, in 2021 the oil price will be at $35 on average.
The decrease in energy consumption occurred on the backdrop of the ongoing COVID-19 pandemic that has caused a slowing of the global economy, limiting the need for resources.
On April 12, the OPEC+ countries agreed on reducing oil production by 9.7 million barrels per day in May and June, followed by 7.7 million per day for the year's second, and then 5.8 million per day until April 2022.
