British bank Barclays lowered its oil price projections for 2020, citing significant pressure on the market by the Saudi-Russian price war and shrinking demand over emergency measures against the coronavirus.

The bank lowered its 2020 Brent and West Texas Intermediate (WTI) price forecasts by 12 USD each to 31 USD per barrel and 28 USD per barrel, respectively.

“Prices are likely to remain under pressure until the virus situation improves and, if we continue on the path of a forecasted market balance, even Saudi Arabia and Russia will not be immune to price changes”, a bank analyst wrote in a note.

Barclays has joined several other banks, which have also lowered their oil price forecasts because of the collapse of OPEC+ in Vienna to further curb production, and because of shrinking demand due to COVID-19.

Barclays also forecasts global available offshore oil storage capacity to reach about 1.5 billion barrels, with an estimated oversupply of more than 5 million barrels per day this year and an oversupply of 10 million barrels per day for the second quarter.

Meanwhile, replenishing US strategic oil reserves through government purchases is unlikely to ease the situation for US producers, the bank added.

Oil prices rise Tuesday with hopes that the US will reach an agreement on a 2 trillion USD stimulus package soon, which can dampen the economic impact of the epidemic and in turn support oil demand.