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.

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