RE:IEA Cuts Oil Demand Forecast As China’s Covid Crisissmallcaptdr wrote: Like I have said so many times, If China and the US the 2 largest economies are contracting that will hurt the price of Oil in the months to come and it's something that Oil traders are aware of, and that's what they are basing their prices off of. And with Central Banks raising interest rates globally we could be caught in a serious deflation scenario caused by raising interest rates quicker than waiting to see what the prior rates have done and it snowballs then you get deflation and that could be the next crisis trying to slow it down or stop the damage done by higher rates so as negative as this news is in the coming months it'll be worst and global Oil demand will suffer. And yes I'm aware that OPEC forecast is for solid demand from emerging economies but nothing trumps recession when it comes to Oil demand
IEA Cuts Oil Demand Forecast As China’s Covid Crisis Continues | OilPrice.com
so how long do recessions last? How long can china keep its population locked down? How long will it take a noticeable uptick in O & G investment to have an impact on supply?
O & G has a supply side problem. There simply isn't enough oil being pumped. All the contrived media headlines won't alter that fact. And it certainly appears that OPEC will act to defend pricing so short term demand fluctuations really don't play into the long term supply equation.