Despite holding strong yesterday, crude oil remains in the dumps amid a double-edged supply and demand shock while some optimism comes from OPEC and Russia, analysts at TD Securities report.
Key quotes
“Headlines regarding the price war will keep volatility extremely elevated, while increased social distancing and diminished travel globally will continue to weigh on the demand front.”
“News that Novak and Russia are keeping in contact with OPEC, and will attend the March committee meeting, is adding a sense of optimism that OPEC+ will eventually return to new output cuts in the future, but the Saudi supertanker loaded with crude is the more immediate worry for markets as inventories are set to swell.”
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