Photo: Maxim Bogodvid / RIA Novosti
Any attempt to rescue the oil market and avoid saving of raw materials prices at such low levels in the long term looks hopeless, because already late. To such conclusion experts of the Goldman Sachs Group Inc., according to Bloomberg.
According to analyst Damien Courvalin, even if the US, Saudi Arabia and Russia jointly agree to freeze or reduce output, it will not be enough.
To reduce global inventories will take many months. In the current context of a sharp reduction in demand resulting from the epidemic of the coronavirus, measures are not as effective as it could be.
The Bank’s calculations show that this month decline in demand will reach 10.5 million barrels per day in April to 18.7 million. In the end, next month in storage will arrive at 20 million barrels per day. In the second quarter as a whole Goldman Sachs expects the average excess of 14 barrels per day.
Earlier, the Japanese Mizuho Bank analyst Paul Sankey (Paul Sankey) predicted filling of all tanks in the world in a maximum of six months. In his opinion, this situation will cause the price of oil drops to negative values.
The oil collapsed after the failure of the transaction OPEC+ in early March. Russia and OPEC countries led by Saudi Arabia are unable to agree on additional production cuts and the extension of the current levels. Currently on the negotiations between the two countries is not reported. In turn, the United States, whose shale industry is suffering because of unprofitable production, has announced its intention to intervene in a price war. U.S. energy Secretary Dan Browett said that Washington does not exclude the creation of the oil Alliance with Saudi Arabia to stabilize prices for raw materials.
Video, photo All from Russia.