Oil: Subdued global oil demand expected to persist – Deutsche Bank

For oil markets to return back to normal, there needs to be a fundamental rebalancing in supply and demand, per Deutsche Bank.

Key quotes

“Owing to the risk of viral reintroduction, we expect that global oil demand may not return to a January 2020 baseline until perhaps sometime in H2-2021.”

“One long-term risk is an oil price upside shock. Without sufficient continued investment in the exploration and development of new oil project to replace declining output, a destabilizing oil price spike would be an increased risk over a 3 to 5 year timeframe.”

“For 2021, our Brent price forecast is now $35/bbl, and our WTI price forecast is $32/bbl.”