An analyst team from Exante, the international investment services company, has shared its outlook that the collapsing oil prices and quarantine softening are prompting an increase in oil refinement levels, which leads to rich reserves of gasoline and distillates.
As the US strategic oil reserve continues acquisition, and big oil consumers like India and China persist in purchasing oil and oil products for reserves, the total amount of crude oil and petroleum products continues to grow.
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The team has said that buying oil at low prices doesn’t equal increased consumption and oil producers are expected to remain under pressure for a while, as companies will likely continue limiting supply.
Exante has also said that share prices of oil producing companies aren’t keeping up with general market recovery, remaining at levels about 40% lower than last year’s peaks. The analyst team has highlighted that the general downward trend in oil giants’ quotes had begun in 2016-2017 and the global response to Covid-19 has only accelerated it.
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By GlobalData
