FXStreet reports that strategists at TD Securities inform that the world is closed; mounting travel restrictions and border closures continue to deliver a direct and immediate hit to energy demand. 

“Crude demand could very well fall in the realm of -500k bpd in y/y terms, with some in the market even anticipating as much as 10m bpd of lost demand through Q2.” 

“To make things worse, increased supply from Saudi, Russia and the UAE remain on the cards amid a price war for the foreseeable future.”

“The combination of both the demand and supply shock suggest massive surpluses, swelling inventories and increasingly depressed prices are on the horizon.” 

“We do not expect any material moves as funds are already positioned extremely short in the complex and elevated volatility will continue to constrain position sizing.”