Oil nears support as it sinks back below $50. What's the pandemic scenario?
Not a pretty picture
Meanwhile, people will stop driving, planes will stop flying and demand for oil could drop dramatically. There is nowhere to store the excess crude with stockpiles already at high levels.
With some hard assets, storage isn't a problem so the market can adapt but an extra 2 million barrels of oil per day isn't going to find a place to hide. So what's the clearing price of those extra barrels. Are you going to be driving/flying more even if the cost is half-price in the middle of a pandemic?