Coronavirus – Oil prices could fall below $10 a barrel

Oil prices have been hammered as the coronavirus has led to evaporating demand. With no planes in the sky and few cars on the road, demand has flatlined and marginal oil producers are starting to fail. Some have pinned their hopes on a supply-side intervention, arguing that if large producers like Saudi Arabia and Russia cut their production, oil prices may find a floor. But in this episode, featuring content from the Bloomberg P&L podcast, we discuss why oil may yet fall to historic lows. We also look at potential opportunities in the stock market and ask just how painful the coronavirus-induced global economic hit is likely to be. – Felicity Duncan

Oil prices have fallen steadily over the last month on a combination of supply and demand shocks. The Saudis launched a price war in March after failing to persuade the Russians to join them in a production cut. As supply swamped the market prices began to fall. At the same moment, demand was plunging on the back of the growing coronavirus pandemic. As the virus spread, travel and trade collapsed and today, oil demand has virtually flatlined. This perfect storm has pushed prices down.

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