Oil: Prices to recover in the next weeks – ANZ

The effects of coronavirus on oil demand are not considered to have an impact in the long-term, and alongside a tightening in supply should lead to a price recovery in the opinion of strategists at ANZ Research.

Key quotes

“We believe that although the threat of coronavirus on the oil demand looks real and significant, it should be shortlived.” 

“A strong rebound in oil demand is likely in the subsequent quarters.” 

“Elevated geopolitical risk in the Middle East and slowing production growth in the US should tighten the supply. We see prices recovering towards USD65/bbl from the current level.”