"Companies in the space will go out of business," Bill Baruch, the founder and president of Blue Line Futures, a Chicago-based futures and commodities brokerage, told Business Insider, referring to oil and gas firms broadly. "They are now in survival mode; we are seeing spending and rig activity quickly cut back."
As the coronavirus has spread around the world and led to store closures, travel bans, and job losses,said it expects the pandemic to spark a severe recession that will subside next year. By the same token, the report's authors said it's maintaining an overweight position in Asian fixed-income investments given "low energy exposure."
Bank of America, meanwhile, said in a note on Monday that it favors buying crude oil "on dips," though noted the recent oil price shock "can have more permanent effects, as it has hurt the balance sheet of oil exporters significantly."— or those involved in transporting and storing oil and other commodities, like natural gas — are typically less exposed to price fluctations.