Demand destruction’
Felipe Elink Schuurman, CEO and co-founder of Sparta Commodities, said the coronavirus pandemic serves as a good analogy for current developments in oil markets.
“In 2020, on average, we lost 9 million barrels per day of demand versus 2019, which is pretty much the equivalent of what we are losing now in terms of supply. So, the market will have to adjust, and we will have to get to that level of demand destruction,” Schuurman told CNBC’s “Squawk Box Europe” on Monday.
“Now the question is ‘where is that demand destruction going to come?’ And unfortunately, it’s going to be a situation where the richer countries are going to pay up. Maybe you don’t see $200 on crude, but you will see that on a regular basis on products, which is what people consume,” he continued.
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