On Friday, the oil market’s worst fears got here true: OPEC+ did not agree on learn how to cope wit
On Friday, the oil market’s worst fears got here true: OPEC+ did not agree on learn how to cope with the coronavirus’ impact on oil demand, sending oil costs plunging. However with the beginning of the brand new week got here new horrors for the oil market, with Russia and Saudi Arabia waging a full-on oil value conflict as each put together to extend oil manufacturing and flood the market.
And now, the market is left questioning which mega oil producer will cry uncle first: Saudi Arabia or Russia. However a third-wheel on this oiltastrophe is none aside from US shale, and each Russia and Saudi Arabia are seemingly rooting for the dying of America’s oil manufacturing, which undermined OPEC+’s finest efforts to handle the market so far.
Amid this catastrophic improvement that noticed an unpleasant finish to the Saudi Arabia and Russia relationship, analysts and banks are scrambling to redo their oil value forecasts but once more, with the coronavirus nonetheless respiration down their necks, and with the 2 rising oil manufacturing at a time when oil demand is predicted to contract in 2020 for the primary time since 2009.
And what the early analysts are…