European Commission sharply lowers oil prices forecasts

European Commission sharply lowers oil prices forecasts

The European Commission has lowered its forecasts for Brent oil prices in 2019-2020 in its Winter 2019 interim report.

Based on futures markets, an average Brent oil price of $61 per barrel is now assumed in 2019 and 2020, according to the European Commission (Autumn Forecast: $80,6 per barrel in 2019; $76.7 per barrel in 2020).

"Upward price pressures are expected to be limited by growing production in the US and in Canada and also a moderation in global oil demand as the global economy gradually shifts to lower gear," the report says.

Euro area GDP is now forecast to grow by 1.3% in 2019 and 1.6% in 2020 (Autumn Forecast: 1.9% in 2019; 1.7% in 2020). The EU GDP growth forecast has also been revised down to 1.5% in 2019 and 1.7% in 2020 (Autumn Forecast: 1.9% in 2019; 1.8% in 2020).

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