We have seen dual shocks to the oil market—a demand shock from the coronavirus and a supply shock from the collapse in talks between OPEC and Russia that prompted production increases several weeks ago. Plunging oil demand has reached unchartered territory and too much supply has created a risk of exhausting oil storage capacity. Some energy services and exploration and production companies will severely struggle, but against this backdrop of near-term market dislocation we are finding compelling investment opportunities.
Our panel of energy sector experts discuss a range of questions including:
- Will the devastation in oil reverse any time soon?
- Potential for a credit crunch: Is there opportunity in distress?
- Who are the potential winners and losers in the aftermath of these shocks?
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