BBVA Research publishes its latest Oil Prices Outlook

Rhea-AI Summary

BBVA Research released its Oil Prices Outlook for September 2020, suggesting that economic conditions are improving but demand remains weak, preventing oil prices from increasing significantly. Economist Marcial Nava anticipates oil prices will stay below $45 per barrel until the end of 2020, with potential upside if a COVID-19 vaccine is introduced by Q4. Additionally, refining activity is still under capacity, and while volatility has decreased, economic recovery remains below pre-crisis levels.

Positive

• None.

Negative

• Weak demand limits oil price recovery potential.
• Oil prices expected to remain below $45 per barrel through 2020.
• Refining activity below capacity, affecting price stability.
• Economic recovery remains below pre-crisis levels.

HOUSTON, Sept. 17, 2020 /PRNewswire/ -- The BBVA Research team has published its Oil Prices Outlook for September 2020, noting that some of the worst economic conditions seem to be over.

The report, authored by BBVA Principal Economist Marcial Nava, indicates that faltering demand is preventing oil prices from experiencing a sustained increase. In the absence of a COVID-19 vaccine, however, limited travel and work from home arrangements are expected to continue to take a toll on fuel consumption.

According to the report, Nava expects prices to remain below $45 per barrel for the remainder of 2020, though prospects could significantly tilt to the upside if a vaccine is available by the fourth quarter of this year. 

While demand recovery varies across countries and products, the Outlook notes that volatility has declined significantly in recent months. In addition, the report  indicates that refining activity remains below capacity, and fundamentals suggest that prices will remain subdued as economic conditions remain below the pre-crisis levels. 

BBVA USA's research team analyzes the U.S. economy and Federal Reserve monetary policy. For its analyses, the economists create models and forecasts for growth, inflation, monetary policy and industries. The Economic Research team also follows a variety of issues that affect the Sunbelt states where BBVA USA operates. Follow their work on Twitter @BBVAResearch and @BBVANews_USA.

Read the full report here.

See the complete library of BBVA Research publications here.

For more BBVA news visit, www.bbva.com and the U.S. Newsroom.

Additional news updates can be found via Twitter and Instagram.

For more financial information about BBVA in the U.S., visit bbvausa.investorroom.com.

About BBVA

BBVA Group
BBVA (NYSE: BBVA) is a customer-centric global financial services group founded in 1857. The Group has a strong leadership position in the Spanish market, is the largest financial institution in Mexico, it has leading franchises in South America and the Sunbelt Region of the United States. It is also the leading shareholder in Turkey's Garanti BBVA. Its purpose is to bring the age of opportunities to everyone, based on our customers' real needs: provide the best solutions, helping them make the best financial decisions, through an easy and convenient experience. The institution rests in solid values: Customer comes first, we think big and we are one team. Its responsible banking model aspires to achieve a more inclusive and sustainable society.

BBVA USA
In the U.S., BBVA is a Sunbelt-based financial institution that operates 641 branches, including 330 in Texas, 89 in Alabama, 63 in Arizona, 61 in California, 44 in Florida, 37 in Colorado and 17 in New Mexico. The bank ranks among the top 25 largest U.S. commercial banks based on deposit market share and ranks among the largest banks in Alabama (2nd), Texas (4th) and Arizona (6th). In the U.S., BBVA has been recognized as one of the leading small business lenders by the Small Business Administration (SBA) and ranked 8th nationally in terms of dollar volume of SBA loans originated in fiscal year 2018.

 

View original content to download multimedia:http://www.prnewswire.com/news-releases/bbva-research-publishes-its-latest-oil-prices-outlook-301133345.html

SOURCE BBVA USA

FAQ

What is the BBVA Oil Prices Outlook for September 2020?

BBVA's Oil Prices Outlook for September 2020 indicates weak demand and anticipates oil prices to remain below $45 per barrel for the rest of the year.

Why are oil prices not increasing according to BBVA Research?

BBVA Research states that weak demand and continued limitations on travel due to COVID-19 are preventing a sustained increase in oil prices.

What factors could lead to a rise in oil prices according to BBVA?

A potential rise in oil prices could occur if a COVID-19 vaccine is available by the fourth quarter of 2020.

How does BBVA assess the oil market's volatility?

BBVA notes that while volatility has decreased significantly in recent months, refining activity remains below capacity.