Oil demand shock may very well be spurred by second wave of coronavirus
SINGAPORE — The following massive shock to the oil business may very well be one more hit to demand, analysts stated.
That might add to the destruction already seen this 12 months as measures taken to fight the pandemic prevented folks from commuting and touring – drastically lowering oil utilization.
Talking at S&P World Platts’ Platts Asia Pacific Petroleum Digital Convention (APPEC) 2020 on Monday, analysts pointed to the potential of a second wave of Covid-19.
“A number of us, we’re speaking about one other demand shock. It is like combating the final battle,” stated Ed Morse, managing director and international head of commodities analysis at Citi.
Throughout a panel dialogue on the convention, he warned that oil producing international locations might expertise an enormous setback.
“We’re seeing international locations which are overly depending on oil earnings, that may’t pay for the civil service, cannot pay for healthcare…training…safety,” Morse stated. “The speed of concern we’ll see … dipped in demand and the big construct in…