'Demand destruction' - analysts race to lower outlooks for oil - Reuters:
Traders and analysts are struggling to revise down their forecasts for oil demand fast enough, as government lockdowns to contain the coronavirus outbreak have rapidly cut fuel consumption.
At the start of the year, forecasters had expected demand to edge up or stay flat. But, in the space of a few months or even weeks, the most bearish outlooks seem hopelessly out of date.
“Demand destruction this year depends on how many countries follow an Italian-style lockdown,” said Giovanni Serio, head of research at Vitol, the world’s biggest oil trader.
“If you extrapolate to the rest of Europe and particularly the United States, then you can get as bearish as you like.”
Traders and analysts are struggling to revise down their forecasts for oil demand fast enough, as government lockdowns to contain the coronavirus outbreak have rapidly cut fuel consumption.
At the start of the year, forecasters had expected demand to edge up or stay flat. But, in the space of a few months or even weeks, the most bearish outlooks seem hopelessly out of date.
“Demand destruction this year depends on how many countries follow an Italian-style lockdown,” said Giovanni Serio, head of research at Vitol, the world’s biggest oil trader.
“If you extrapolate to the rest of Europe and particularly the United States, then you can get as bearish as you like.”
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