Oil: Fall in demand never seen before – ANZ

The crude oil prices fell sharply, as signs of a collapse in demand emerged, economists at ANZ Bank apprise.

Key quotes

“Inventories at Cushing, Oklahoma are said to have increased nearly 4mbbl last week, according to Genscape data. This is raising the prospect of storage running out for crude oil. 

“The collapse in prices prompted a call for action from US President Trump, who reached out to Russian President Putin to discuss the price war with Saudi Arabia, with the two agreeing to keep discussion ongoing.” 

“The reality is that the level damage to demand is likely to overwhelm any production cut agreement between major producers. The lockdown of cities around the world and the shutdown of the aviation industry will cause a fall in demand the industry has never seen before.”