A recent Reuters poll estimates that the bearishness in crude oil prices is expected to continue into 2020 over rising concerns of weakening demand amid a glut in supply. Economists have forecast UK Brent oil to average at around $62.50 per barrel, slightly more than the average forecast from last month of $62.38 per barrel.

According to the IEA, OPEC and its allies are expected to face tough competition from non-member oil producing nations in 2020. This could result in oversupply even as global demand for oil remains weak in the wake of escalating trade tensions.

OPEC has anticipated supply to exceed demand by 70,000 bpd in 2020, an issue which could remain in focus when leading oil producing nations and their allies meet in Vienna later this week. There are expectations that OPEC+ could extend production curbs in crude oil beyond the current deadline of March 202o until at least mid of next year.

Oil demand is expected to grow at anywhere between 0.8 million and 1.4 million bpd in 2020, while oil inventories are likely to build up in H1 2020 on account of continued trade tensions keeping oil demand under pressure.