2020 may see low oil prices on back of supplies from non-OPEC nations: IATA

Oil prices are set to stay relatively low during 2020 as the supply from the non-OPEC countries will remain plentiful and global demand weak, global airlines body IATA said on Wednesday.

Oil prices have a massive affect on Indian airlines, as Aviation Turbine Fuel (ATF) takes around 40 per cent of the total revenues of an air carrier in India.

"Oil prices look set to stay relatively low over the next 12 months. Supply, particularly non-OPEC, is plentiful and demand is weak," said an economic outlook presented here by Brian Pearce, Chief Economist, International Air Transport Association (IATA).

"Analysts expect oil inventories to rise early next year as a result. This is likely to keep oil prices stable and our assumption for 2020 is an average price for Brent Crude of USD 63 per barrel," the economic outlook added.

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