With India as the latest country to announce shelter-in-place
restrictions to combat the spread of COVID-19, BTU Analytics has
estimated the 2Q 2020 impact of COVID-19 will be lower global liquids
demand by an average of 8.6 MMb/d. This virtually overnight destruction
of demand, coupled with the unraveling of coordinated production cuts
from Saudi, Russia, and other OPEC nations has sent crude prices
spiraling into the $20/bbl range from above $60/bbl at the start of
2020. Even as the industry slashes budgets and furloughs completion
crews, the question remains, will it be enough? What does it take to
offset not only global demand destruction from COVID-19, but also
increasing production from Saudi, the UAE, and Russia? Will US producers
be forced to shut-in oil production?
https://btuanalytics.com/will-storage-constraints-lead-to-oil-shut-ins/
No comments:
Post a Comment