French professor: Oil price will rise as the economy revives

"If economic stagnation caused a decline in oil price, it means that the economy needs oil. Oil price will increase as the economy revives, Jean-Antoine Duprat, Professor, Deputy Director of the Institute of Urban Planning and Development of the University of the Sorbonne Paris told Report.

"Oil price fell because of the economic recession. As the oil is produced, there must be a consumption too. Need for oil drops when the economy stagnates. The oil is produced uninterruptedly. However, if the economic stagnation caused a decline in oil prices, the economy would need oil. The oil price will rise as the economy revives."

Jean-Antoine Duprat also touched upon when the economy will revive: "Oil is mainly used for the production of electricity, and automobiles. However, planes also use oil. It means that oil prices may rebound after all international flights resume. The economy will probably revive in late 2021 and 2022."

Jean-Antoine Duprat

Jean-Antoine Duprat said that the decline in oil price was caused by only economic recession due to the coronavirus. However, according to him, the oil price may drop because of countries' political agreements: "The global oil prices are regulated not only by the relations between buyers and sellers. Oil-producing countries can make a decision on the oil price. Before the coronavirus, Saudi Arabia and Russia had reached an agreement to leave the US under difficulties. These countries are still free to make their joint political, strategic choices."