“It’s a problem of an oil price war in the middle of a constricting market when the walls are closing in…Normally demand would solve the problem in a way, because you would have lower prices that act like a tax cut and it would be a stimulus. But not in this case because of the freezing up of economic activity. Low gasoline prices … don’t do much when schools are closed, people are cancelling all their trips, and people are working from home.”
-Daniel Yergin, energy historian and vice chairman of IHS Markit, on oil markets and the global economy. Yergin said it would be “a long time before pressure is eased” on the oil market. [reuters.com]
