Goldman sees oil tumbling another 32% by July as coronavirus hits demand - Business Insider

on April 1, the day that previous cuts from the organization are set to expire.

"The implications of lower oil prices is far reaching, driving down the input costs of agriculture and many other goods while quarantines will further hit restaurant and cafe demand for livestock and softs," Currie wrote. Going forward, Currie expects that both equity and commodity prices will rebound once the contagion stabilizes. Equities will revert back to normal faster, however, as they're forward looking whereas commodity markets "are spot assets and must clear the surpluses developing today from weak demand and rising supply."

And, there is at least one silver lining to the shake-up the current shock is spurring in oil, Currie said. "The industry is likely to emerge in a much more healthy position with many of the zombie companies that were a dead weight on returns removed, even paving the way for an attractive international offering of Saudi Aramco," he wrote.

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

CureVac CEO interview, coronavirus vaccine development, controversy - Business InsiderEverything you need to know about CureVac, the German drugmaker working on a coronavirus vaccine that's at the heart of a US-German controversy I want to know about the other ~25companies they were talking to. DecriminaliseAllDrugUseNow CORONAVIRUSUPDATE
Source: BusinessInsider - 🏆 729. / 51 Read more »

Stock market outlook: S&P 500 to hit 2,000 on coronavirus worries - Business InsiderThe coronavirus' 'financial and societal devastation' will drag the S&P 500 to its lowest level in four years before a sharp recovery, Goldman said.
Source: BusinessInsider - 🏆 729. / 51 Read more »