Even if the oil market turns for the better, the coronavirus' fallout will create lasting scars, JPMorgan said. Demand won't reach pre-outbreak levels until November 2021, and the risk to own oil and gas assets "has likely been permanently elevated" due to greater uncertainty around supply and demand dynamics.
JPMorgan recommends defensive oil stocks for the near-term as months of market rebalancing is poised to fuel strong volatility. Natural gas has emerged as the bank's "obvious winner," while oil exploration and production businesses are "largely uninvestable" until oil prices match the cost of shale discovery.
WTI crude traded as much as 11% higher on Thursday to $26.74 per barrel. Brent crude jumped as much as 7% to $31.84 per barrel. Both contracts will trade at roughly $34 per barrel by the end of 2020, the analysts projected, before Brent crude climbs to $37 per barrel the following year.
fun times coming in 10days...lol
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Source: CNBC - 🏆 12. / 72 Read more »