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20 Feb 2020
Sector Note -
Chariot Limited (CHAR:LON), 8.9 | Molecular Energies PLC (MEN:LON), 11.5 | Jersey Oil & Gas PLC (JOG:LON), 156 | Touchstone Exploration Inc (TXP:LON), 43.5
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Sector Note -
Chariot Limited (CHAR:LON), 8.9 | Molecular Energies PLC (MEN:LON), 11.5 | Jersey Oil & Gas PLC (JOG:LON), 156 | Touchstone Exploration Inc (TXP:LON), 43.5
- Published:
20 Feb 2020 -
Author:
Jonathan Wright -
Pages:
48
Covid-19 exposes already well supplied markets. The coronavirus has sent a shockwave through the global energy complex, causing sharp reductions in both oil and gas demand in China. While this is temporary, it exposes already well supplied markets and prices have tumbled as a result. OPEC+ needs to act quickly to help bring the market back into balance, and its Joint Technical Committee has recommended an additional 600 kbpd cut to output until mid-year. If implemented, this may offset the demand impact from coronavirus, but it won’t come quickly enough to prevent inventories building through H1 2020. OPEC is currently not scheduled to meet until early March; if the demand hit from Covid-19 is as big as some suggest, it would be prudent to bring that forward.