https://markets.businessinsider.com/news/commodities/oil-price-outlook-citi-70-demand-drops-recession-looms-brent-2022-6
According to Citi’s head of global commodity research, they’re now a 1.4 million barrel/day decrease in demand, compared to their initial 2022 estimate (now 2.2 million expected, compared to 3.6 million), because of a looming recession.
I found this article interesting, first because this is the first estimate given of demand destruction I’ve seen. Secondly, Citi is also predicting a recession in a rather abrupt period of time.
I don’t really know what to make of this prediction, seeing as how hot the job market and consumer spending appears to be. But if I had to guess, this prediction is too premature. Also, if demand for oil drops this sharply, how does that bode for the rest of the market?
