After OPEC + decided to cut oil production by another 1.45 million b/d during February and March, Brent jumped to a new high of $ 55 per barrel. However, Ole Hansen, head of commodity strategies at Saxo Bank, believes that in the first quarter of 2021, the price of Brent will fall below $ 50 per barrel.

“The fact that Saudi Arabia decided to cut production affected the price of Brent. OPEC + has tried to do everything it can to support the sector during such a difficult period as the coronavirus pandemic is spiraling out of control around the world”, - Hansen said.

At the same time, the chief strategist of Saxo Bank does not exclude that Saudi Arabia will continue to do everything possible to support the price of Brent oil. However, he believes that despite everything, a recovery to $ 60 per barrel should not be expected earlier than the second half of the year.

Note that Saudi Arabia reduced production, while Russia and Kazakhstan at the same time were allowed to increase it to 150 thousand b/d (in February and March). This became a growth driver for Brent, the price of which increased by 11% in a few days.

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