Strategists at Rabobank will be closely monitoring Saudi crude oil production and exports as the April deadline for the huge supply increase is approaching. WTI trades at $22.068.
“We expect the oil market to remain under pressure in most scenarios given the historic demand destruction taking place, however, we also expect supply-side developments will have a meaningful impact on the price formation in the weeks ahead.”
“Our base case is for the price war to end in the not too distant future given the political pressure that is building on Saudi Arabia and the poor optics of destabilizing markets during a period of global pandemic.”
“If the price war persists though, then the price outlook is far worse and all bets are off as to how low crude oil can go.”