{"id":52032,"date":"2020-03-30T09:23:57","date_gmt":"2020-03-30T14:23:57","guid":{"rendered":"https:\/\/olduvai.ca\/?p=52032"},"modified":"2020-03-30T09:24:03","modified_gmt":"2020-03-30T14:24:03","slug":"this-is-the-largest-economic-shock-of-our-lifetimes-goldman-sees-negative-prices-amid-oil-devastation","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=52032","title":{"rendered":"“This Is The Largest Economic Shock Of Our Lifetimes”: Goldman Sees Negative Prices Amid Oil Devastation"},"content":{"rendered":"\n

“This Is The Largest Economic Shock Of Our Lifetimes”: Goldman Sees Negative Prices Amid Oil Devastation<\/a><\/h3>\n\n\n\n

Over the weekend, we reported <\/a>that with the oil industry oversupplied by a mindblowing 20 million barrels daily <\/a>as roughly 20% of total global output ends up unused in a world economy that has ground to a halt, and instead has to be parked in storage either on land or sea, the unthinkable is about to happen: oil storage space is about to run out, and as that happens the price of oil will continue sliding ever lower and lower until it finally goes negative <\/strong>as some such as Mizuho’s Paul Sankey predict <\/a>it will, over the next few months, leading to an unprecedented shockwave across the global energy market.<\/p>\n\n\n\n

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Then overnight, more eulogies for the oil market emerged, with Bank of America writing that oil has now slumped “into the abyss<\/strong>” and it expects to see the “steepest decline in global oil consumption ever recorded, with our base case reflecting a 12mn b\/d drop in 2Q20 and a 4.5mn b\/d contraction on average for the year” and on a net basis, BofA now expects global oil demand to contract by almost 17mn b\/d in April with consumption recovering modestly into 3Q20 and beyond.<\/strong><\/p>\n\n\n\n

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The bank also adjusted its oil price forecasts for 2020 and 2021 down to $37 and $45\/bbl for Brent and to $32 and $42\/bbl for WTI respectively, but in the near-term, it sees both benchmarks temporarily trading in the teens in the coming weeks.<\/p>\n\n\n\n

However, by going all “there will be blood” <\/em>on oil, BofA has only caught up where Goldman has been for the past two weeks, ever since it predicted that the “physical end was near.” Meanwhile, in a note of unprecedented gloom, Goldman now says that “the physical end is here” <\/strong>as the coronacrisis goes global.<\/p>\n\n\n\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"

“This Is The Largest Economic Shock Of Our Lifetimes”: Goldman Sees Negative Prices Amid Oil Devastation Over the weekend, we reported that with the oil industry oversupplied by a mindblowing 20 million barrels daily as roughly 20% of total global output ends up unused in a world economy that has ground to a halt, and instead has to be […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,3],"tags":[376,588,4318],"class_list":["post-52032","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","tag-goldman-sachs","tag-oil","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/52032","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=52032"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/52032\/revisions"}],"predecessor-version":[{"id":52033,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/52032\/revisions\/52033"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=52032"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=52032"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=52032"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}