A press release has just been published by eToro analysts Edoardo Fusco Femiano and Adam Vettese where they discussed the strong impact that Covid-19 is having on crude oil.
According to them, the “demand is non-existent” and therefore it is necessary to pay
“attention to a possible deflation. US producers are in a more distressing situation, while investors are calling for production to be cut”.
Especially in these days, Covid-19 is having strong repercussions on oil prices and so eToro has published its analysis on the subject.
“Beyond yesterday’s movement related to technical deadlines, investors are calling for a significant cut in production and an agreement between the US, Russia and Saudi Arabia. The energy sector represents about 3% of the world’s GDP, but if it is extended to related sectors, its importance is much greater. Not to mention that even the structurally more fragile renewable energy sector has suffered an even greater impact,” explained Fusco.
“The coronavirus is rewriting the rules of the global economy. Oil demand is virtually non-existent and this incredible sell-off is almost entirely caused by concerns about crude oil storage. It’s worth noting that Brent is not having the same storage problems as US crude oil. A situation that puts US oil producers in a very painful situation. In the meantime, this state of affairs has also generated further concerns in governments and central banks, which are desperately seeking countermeasures to contain the economic impact of Covid-19. Such a sharp fall in crude oil prices could cause a rapid slowdown in global inflation and some countries could even suffer deflation,” Vettese added.
Who knows what will happen to Petro in this scenario, given that the future of the Venezuelan “crypto” project already seemed to have come to a standstill and not used by the people who seem to prefer Dash.