Oil set to recover as coronavirus fears retreat: report
There has been a continued moderation in new coronavirus cases and certain supply-side risks resulting a “U-shaped” recovery in oil prices, said the latest Oil Market Weekly from MUFG.
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There has been a continued moderation in new coronavirus cases and certain supply-side risks resulting a “U-shaped” recovery in oil prices, said the latest Oil Market Weekly from MUFG.
The recent strength in oil prices is signalling that much of the coronavirus-driven development has been priced in, and barring an acceleration of new cases, oil markets should remain relatively supported until we get the first-look data surrounding supply chains and demand contraction contagion effects from China, the report said.
“Mapping the hit on global oil demand to our oil pricing model continues to point for Brent ending Q1 2020 at $66.5 per barrel (/b) and averaging 2020 at $62.3/b – unchanged since December 2019 – though risks remain to the downside,” the MUFG report added. – TradeArabia News Service
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