Citi expects oil prices to stay weak in H1 2020 before finally recovering toward year-end

Author: Eamonn Sheridan | Category: News

A client note from Citi (via Bloomberg) related to oil impacts from the coronavirus outbreak.

It begins by saying markets are overconfident by looking for a sharp recovery (V-shaped) in markets impacted by the coronavirus 
  • Citi look for a weaker "U" shaped recovery in physical markets, "W" shaped(or a series of Ws) for financial markets (bonds, equities and commodities)
  • Notes China stimulus efforts but says supply-chain recovery is problematic, as is weak demand in China 
  • On oil specifically, weak China demand poses problems for imports from the US

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