Oil: The world is drowning in crude – TDS

Energy markets have to contend with both the dramatic impact of containment measures on the demand side, but also on the ongoing price war, economists at TD Securities brief.

Key quotes  

“We note that WTI crude oil's beta to pandemic sentiment has declined as our fear gauge has subsided, highlighting that while prices have strongly reflected the deterioration in sentiment over the last few weeks, they may not entirely capture the benefit from improving sentiment.” 

“We caution that storm clouds still loom on the horizon, as the potential for a New Global OPEC+ would be very constructive long term but would nonetheless be vastly outweighed by the demand destruction and still-massive oversupply.”