Global oil price collapse will worsen says citis ed morse
A timely and relevant topic!
According to a recent report by Citigroup's energy strategist, Ed Morse, the global oil price collapse is likely to worsen in the coming months. Here are some key points from the report:
- Oil prices to fall further: Morse predicts that Brent crude oil prices will drop to around $30 per barrel by the end of 2020, down from around $40 per barrel currently.
- Global demand to decline: The report cites a decline in global oil demand due to the ongoing COVID-19 pandemic, which has led to widespread lockdowns, travel restrictions, and reduced economic activity.
- Supply glut to persist: Despite OPEC's efforts to cut production, the report expects a persistent supply glut to continue, which will put downward pressure on oil prices.
- US shale production to remain high: Morse notes that US shale oil production is likely to remain high, which will continue to put downward pressure on prices.
- Global economic uncertainty: The report highlights the ongoing uncertainty surrounding the global economy, which is likely to weigh on oil demand and prices.
Morse's report is not the only one warning of a potential oil price collapse. Other analysts and experts have also expressed similar concerns, citing factors such as:
- The ongoing pandemic and its impact on global demand
- The increasing supply of oil from non-OPEC countries, such as the US
- The lack of effective demand management by OPEC and other major oil producers
- The potential for further economic downturns and recessions
It's worth noting that oil prices have already fallen significantly since the start of the year, with Brent crude oil prices dropping by around 60% since January. The ongoing pandemic and economic uncertainty have created a perfect storm for oil prices, and it's likely that prices will continue to be volatile in the coming months.