Oil: Weathering the storm – ANZ

Oil demand has collapsed and is likely to be weak for the foreseeable future, per ANZ Bank. WTI is trading at $18.22.

Key quotes

“We estimate a demand loss of 20mb/d in Q2, as travel restrictions persist across many countries.”

“We expect low prices and limited storage to force closures, primarily in North America and Europe.” 

“Risks are still skewed to the downside for prices in the short-term, while prices will see a recovery once mobility restrictions are eased and production curbs by OPEC remain in place.”