Average Brent crude price to be $40-45 per barrel for the full year, says Moody's

“On the downside where we assume that the impact on economy continues for the entire 2020, we are looking at $30 per barrel as an average,” said Halan.

On OPEC decision, Halan said, “We are more interested in the both sides of the equation, the demand side as well as the supply side. You can have an Organization of the Petroleum Exporting Countries (OPEC) decision today that can result in decline or cut in production for a brief period but that may not be enough. We are looking at demand destruction currently at a minimum 20 percent from the peak that we had in 2019..."

“We have already started seeing oil majors cutting down their capex, which could have an impact on their production – not today but 12 months from now or 18 months from now. We have already started seeing that reduction. So whatever they do today may not have an implication right now. We might see an oil price increase or decrease because of that. 12-18 months from now when we are out of this demand destruction and you would be facing a situation where most of the global oil majors outside of OPEC have reduced their ability to produce, that will be very interesting to see how it evolves,” he added.