Oil demand will drop 10.5 million barrels in March


He said that the return to normal activities would be accompanied by a major oil inflationary shock

Source: Dubai – Reuters

Goldman Sachs expected oil demand to drop by about 10.5 million barrels per day in March and 18.7 million barrels per day in April.

The bank said that global isolation measures are leading to an unprecedented collapse in oil demand.

He pointed out that the shock of demand of this magnitude will overwhelm any response in terms of supplies, including freezing / reducing production of key OPEC countries.

According to the bank, there is an increased risk expected for a more robust price recovery, compared to a rise in a fundamental scenario again to $ 40 a barrel by Brent by the fourth quarter of 2020.

Goldman Sachs stated that the return to normalization of activities would be accompanied by a major oil inflationary shock.

In a related context, oil prices fell today, Thursday, after gains achieved over three days, as the prospects for a rapid decline in demand due to travel restrictions and isolation operations imposed against the Corona virus exceeded the impact of the pending hopes on a US $ 2 trillion emergency stimulus that would support economic activities.

Brent crude futures fell 64 cents, or 2.3%, to $ 26.75 a barrel by 07:32 GMT. US West Texas Intermediate crude futures fell 78 cents, or 3.2%, to $ 23.71 a barrel. The benchmarks are down about 60% since the beginning of this year.


Please enter your comment!
Please enter your name here