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Strategists at Credit Suisse believe in oil prices not much driven by the agreed production cuts in the coming months, but rather by the level of virus-stricken demand.

Key quotes

“Given uncertainty of the immediate demand and always questionable quota discipline of producers, Brent prices may fall to between $25 and $30 per barrel of Brent.”

“The future of oil prices will depend on whether the probable V-shaped restoration of demand would be met by supply both from production and storages. Assuming the pandemic does not take a new turn for the worse after early summer, Brent prices may revert to above $40 per barrel by the end of the year.”