Oil: Deteriorating demand – ANZ

Brent crude oil hovered around USD27/bbl, as stimulatory measures failed to impress the oil market amid deteriorating demand, economists at ANZ Bank inform.

Key quotes

“With lockdowns in many countries, expectations of oil demand contracting by more than 10mb/d are rising. Such demand loss will increase the supply glut.”

“Production increases by Saudi Arabia and Russia loom, and things still look uncertain due to the ongoing price war between these two countries.”

“The US Secretary Pampeo urged Saudi Arabia to reassure global energy and financial markets when the world faces serious economic uncertainty.” 

“The latest weekly US inventories report showed an increase of 1.62m barrels, the highest since July.”