Oil Looks Into Abyss as Coronavirus Threatens Demand Contraction - Bloomberg:
Flights canceled in Europe, schools closed in Japan, towns quarantined in Italy and panic in California. The coronavirus crisis has gone global, and with it, its impact on energy demand.
For only the fourth time in almost 40 years, oil consumption may not grow at all in 2020, according to a growing minority of traders, investors and analysts. For OPEC, gathering in Vienna this week to discuss production policy, it’s a nightmare scenario likely to force the cartel into deep output cuts.
“I see no growth in demand this year now the Coronavirus is everywhere,” said Doug King, a hedge fund investor who co-founded the Merchant Commodity Fund.
Flights canceled in Europe, schools closed in Japan, towns quarantined in Italy and panic in California. The coronavirus crisis has gone global, and with it, its impact on energy demand.
For only the fourth time in almost 40 years, oil consumption may not grow at all in 2020, according to a growing minority of traders, investors and analysts. For OPEC, gathering in Vienna this week to discuss production policy, it’s a nightmare scenario likely to force the cartel into deep output cuts.
“I see no growth in demand this year now the Coronavirus is everywhere,” said Doug King, a hedge fund investor who co-founded the Merchant Commodity Fund.
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