Nick Cunningham, OilPrice.com, has a nice piece on oil prices… Here are some takeaways, but do read the whole thing:
“‘Estimates for the demand side are being revised downwards on an almost daily basis, while on the supply side there is still no sign of any reconciliation between Saudi Arabia and Russia,” Commerzbank said in a note on Monday.”
”Plains All American Pipeline reportedly sent a letter to U.S. oil producers asking them to curtail production, according to Bloomberg, and other pipeline companies are apparently making similar requests. “We are sending this proactive request to our suppliers to ask that you take steps to reduce oil production in response to the pandemic,” Plains said in the letter, according to Bloomberg.”
”Goldman Sachs sees U.S. oil production falling by 1.4 million barrels per day (mb/d) between now and the second quarter of 2020. However, the bank said that declines from lower drilling rates today wouldn’t necessarily translate into lower production until the third quarter of this year.”
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