Warning: file_exists(): File name is longer than the maximum allowed path length on this platform (260): C:\zpanel\hostdata\zadmin\public_html\forexbr_com_br/wp-content/cache/supercache/www.forexbr.com.br/2020/05/08/goldman-sachs-official-says-companies-switching-to-zoom-instead-of-business-travel-could-hit-oil-demand-by-up-to-3-million-barrels-per-day/meta-wp-cache-8ff9e5adffe32aab83727b9a8fe593b7.php in C:\zpanel\hostdata\zadmin\public_html\forexbr_com_br\wp-content\plugins\wp-super-cache\wp-cache-phase2.php on line 71 Warning: file_exists(): File name is longer than the maximum allowed path length on this platform (260): C:\zpanel\hostdata\zadmin\public_html\forexbr_com_br/wp-content/cache/supercache/www.forexbr.com.br/2020/05/08/goldman-sachs-official-says-companies-switching-to-zoom-instead-of-business-travel-could-hit-oil-demand-by-up-to-3-million-barrels-per-day/index.html in C:\zpanel\hostdata\zadmin\public_html\forexbr_com_br\wp-content\plugins\wp-super-cache\wp-cache-phase2.php on line 99 Goldman Sachs official says companies switching to Zoom instead of business travel could hit oil demand by up to 3 million barrels per day – Forex Brasil

Goldman Sachs official says companies switching to Zoom instead of business travel could hit oil demand by up to 3 million barrels per day

Global oil demand is expected to fall by 9.3 million barrels per day in 2020, according to the International Energy Agency.

Demand for oil has been hurt significantly by the pandemic as countries impose lockdowns to control its spread, and countries have cut supplies. In April, futures for West Texas Intermediate crude traded below zero for the first time ever.

Read:Rising oil prices help drive FTSE 100 shake off Bank of England’s dire forecast

For everything but business travel, Currie expects a strong recovery in demand, but the oil supply could take a little longer to get back online.

“We believe demand will exhibit a V-shaped recovery, but supply will exhibit an L-shaped recovery,” he said, as wells need to come back online, and companies need to increase spending. This could mean demand rises above supply as early as June 1, he said.

But while demand returns to normal, it will be from a base with less business travel. “Before we used to have these internal meetings and things of that nature, and I think this is going to be way more Zoom-oriented, other types of substitutes,” he said.

“Look at the routes that the airlines are planning when they come back, they’re not going to be at the same level that they were previously.”

Airline stocks have plunged since the beginning of the crisis as almost all air traffic has come to a halt. In April British Airways owner IAG warned that the “recovery of passenger demand to 2019 levels will take several years.”

Read:Oil prices head higher as Saudi Arabia lifts prices, China crude imports climb

Currie believes the U.S. will recover similarly to China. “So far, we look at the rest of the world, it followed China almost perfectly on the way down and thus far is looking pretty much like China on the recovery,” he said. But the return to pre-crisis levels could come as late as the third quarter of 2022.

Storage facilities are verging on full, and Currie says expensive floating storage units will need to be emptied before prices can start to increase. Inventory levels may take until mid-2020 to normalize, at which point prices will stabilize around $50 per barrel.

Brent crude BRN00, -0.35% traded over $30 per barrel on Thursday and has climbed 16% over the last five days.

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