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Post by Berean on Feb 16, 2020 0:22:24 GMT -5
Could this lead to an economic collapse? "Tankers, Tankers. Everywhere!" - Virus Causes Historic' Traffic Jam' Across Asian Supply Lines
by Tyler Durden Sat, 02/15/2020 - 19:00 Covid-19's effect on global energy markets has been disastrous. OPEC slashed its oil demand forecast last week, and Goldman Sachs doubled down on its bearish oil take and has cut its oil price target by $10 to $53 for the year, as a result of a "demand shock" that is set to collapse Chinese oil consumption by 20%, or as much as 4 million barrels per day. The sharp decline in demand in China, which by the way, is the world's largest oil importer, is now stranding oil cargoes off the country's coast and across Asia. Bloomberg's Stephen Stapczynski records footage of an impressive parking lot of tankers and other vessels off the coast of the anchorages of the port of Singapore, one of the largest freight hubs and busiest ports in the world. Much of the oil consumption decline is because, as we reported on Friday, China's economy is faltering as its industrial hubs remain shuttered. Take a look at the chart below, in the Feb 7-13 week, steel apparent demand is down a whopping 40%, but that's only because flat steel is down "only" 12% Y/Y as some car plants have ordered their employee to return to work. Full story with charts and graphs at link
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