Oil sector faces unprecedented challenge
Billions of people under quarantine and a global shutdown of business operations is devastating company finances
The Covid-19 outbreak seemed little more than another temporary shock to long-term rangebound energy markets barely a month ago. China appeared to have contained a largely localised phenomenon, and observers were estimating how long it would take Asian demand to recover. Oil producers stuck firmly to their 2020 production guidance. But events have radically changed. Europe is now the epicentre of a global emergency that could last months and test the healthcare capabilities of governments throughout the world. The associated collapse in global energy demand—and uncertainty how and when supply will respond in the wake of Opec+ disarray—have shocked commodity markets. “The weak global economy
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