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Oil demand is unlikely to recover until travel restrictions globally have eased, strategists at ANZ Bank report.

Key quotes

“Demand has collapsed and is likely to be weak for the foreseeable future. We estimate a demand loss of 20mb/d in Q2, as travel restrictions persist across many countries.”

“A supply side response is inevitable, although the chance of a coordinated global supply cut is low. 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.”