Petroleum and Covid-19: analysts’ opinions
Analysts eToro Edoardo Fusco Femiano and Adam Vettese, on the strong impact Covid-19 on petroleum, they said in a recently released press release.
According to them, the “The question is non-existent” and so we have to do:
“Watch out for possible deflation. American producers are indeed in a state of greatest suffering, while investors are asking for a drop in production. “
Above all these days, Covid-19 has a strong impact on the price of oil and eToro has therefore published its analyzes on the subject.
“Beyond yesterday’s movement linked to technical delays, investors are demanding a significant drop in production and a non-frontal agreement between the United States, Russia and Saudi Arabia. The energy sector weighs around 3% of world GDP, but if we extend it to related sectors, its weight is much greater. Without considering that even the structurally fragile sector of renewable energies is even more impacted “, he has sFolded fusco.
“The coronavirus is rewriting the rules of the world economy. The demand for oil is practically nonexistent and this incredible sale is almost entirely caused by fears concerning the storage of crude oil. It should be noted that Brent does not have the same storage problems than US crude oil. A situation that puts American oil producers in the greatest trouble. In the meantime, this situation has also raised new concerns among governments and central banks, who are desperately seeking counter- measures to limit the economic impact of Covid-19. Such a sharp drop in the price of oil could lead to a rapid slowdown in global inflation and some countries could even suffer deflation “, added Vettese.
Who knows what’s going to happen Petro in this scenario, already seen on Venezuela “crypto” project he seems to have failed and his future is not too clear. After all, the Venezuelan population about cryptocurrencies seems to prefer Dash.
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