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Oil Demand Will Never Reach Pre COVID19 Pandemic Levels – Citigroup

Gasoil News - Published on Fri, 03 Jul 2020

Image Source: Oil Demand Price Coronavirus COVID19
Analyst say that demand growth for refined oil products will never return to the levels it reached before the coronavirus outbreak. Citigroup analyst Mr Ed Morse wrote that “As the global economy restarts, fewer people will fly and use their cars. With meetings going virtual and business no longer needing to move employees around the world in the same way as before, there will be powerful forces pushing a transition away from oil, Oil product demand growth will falter significantly, change its contours and never return to pre-covid-19 rates of growth.”

Citi also cast a warning to those hoping for a return of USD 100 crude. With production returning at USD 45 a barrel, longer-term supply costs falling in recent years and plenty of supply already offline with political risks, triple-digit crude has far more fantasy than reality at its heart.

At its peak, the virus wiped out as much as 30% of total oil demand and the market is still recovering.

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Posted By : Yogender Pancholi on Fri, 03 Jul 2020
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