FXStreet notes that the S&P 500 extends its corrective setback and whilst economists at Credit Suisse see scope for a near-term bounce on Monday, the “ideal” scenario remains to look for a deeper corrective setback to test support at 3280/60. 

“The S&P 500 extends its corrective setback and although we see scope for a near-term bounce this morning, with a bearish ‘outside day’ in place from last week and with the market still below its 13-day exponential average, currently seen at 3410, the risk for a deeper setback remains. Key to the broader picture as to the severity of a setback remains seen from rates markets though and whether we see a more decisive move lower in 10yr US Breakevens and a base in 10yr US Real Yields, neither of which we have yet to seen, although the risk of which very much remains.” 

“Above 3369 would suggest there is scope for a move back to 3395, potentially 3410, but we look for this latter level to then ideally cap for a move back to 3307/03 ahead of our ‘ideal’ objective and what we look to be better support at 3280/59 where we will look for a floor – the 38.2% retracement of the rally from mid-May, 23.6% retracement of the entire rally from March, July high and 63-day average.” 

• Expects 2021 oil demand to rise by 6.62 mbpd  compared to its previous forecast of 7.0 mbpd rise
• Says coronavirus impact remains challenging and requires coordinated policy action from all market participants, including OPEC+
• Lowers forecast for global demand for its crude by 700K bpd in 2020 and 1.1mln bpd in 2021, due to higher non-OPEC supply view and lower global demand
• Says oil production rose by 760,000 to 24.05 mbpd in August as OPEC+ eased supply cut

Bloomberg reports that BP Plc said the relentless growth of oil demand is over, becoming the first supermajor to call the end of an era many thought would last another decade or more.

Oil consumption may never return to levels seen before the coronavirus crisis took hold, BP said in.

BP is making a profound break from orthodoxy. From the bosses of corporate energy giants to ministers from OPEC states, senior figures from the industry have insisted that oil consumption will see decades of growth.

The U.K. giant is describing a different future, where oil’s supremacy is challenged, and ultimately fades. That explains why BP has taken the boldest steps so far among peers to align its business with the goals of the Paris climate accord. 

That’s because he suspects oil use may already have peaked as a result of the pandemic, stricter government policies and changes in consumer behavior. BP’s energy outlook shows consumption slumping 50% by 2050 in one scenario, and by almost 80% in another. In a “business-as-usual” situation, demand would recover but then flatline near 100 million barrels a day for the next 20 years.