Oil Prices Plunge On Grim IMF Economic Forecast

Oil & Gas
Proshare - Facebook Proshare - Twitter Proshare - Linked In Proshare - WhatsApp

Wednesday, April 15, 2020 04:55 AM / by Oilprice.com/ Header Image Credit: Oilprice

As if oil prices needed any more help on their downward spiral towards the teens, The IMF just slashed global growth to the worst since the '30s.


"This crisis is like no other," Gita Gopinath, the IMF's chief economist, wrote in a foreword to its semi-annual report.


"Like in a war or a political crisis, there is continued severe uncertainty about the duration and intensity of the shock."

 Proshare Nigeria Pvt. Ltd.

As Bloomberg notes, The International Monetary Fund predicted the "Great Lockdown" recession would be the steepest in almost a century and warned the world economy’s contraction and recovery would be worse than anticipated if the coronavirus lingers or returns.

In its first World Economic Outlook report since the spread of the coronavirus and subsequent freezing of major economies, the IMF estimated on Tuesday that global gross domestic product will shrink 3% this year.

Proshare Nigeria Pvt. Ltd.

That compares to a January projection of 3.3% expansion and would likely mark the deepest dive since the Great Depression. It would also dwarf the 0.1% contraction of 2009 amid the financial crisis.

Of course, there is the hockey-stick recovery with IMF anticipating growth of 5.8% next year, which would be the strongest in records dating back to 1980, it cautioned risks lay to the downside.

Proshare Nigeria Pvt. Ltd.

The grim projections are a stark reversal from the IMF's outlook less than two months ago (on Feb. 19, the fund told Group of 20 finance chiefs that "global growth appears to be bottoming out.")... and now...


"Many countries face a multi-layered crisis comprising a health shock, domestic economic disruptions, plummeting external demand, capital-flow reversals and a collapse in commodity prices," the IMF said.

Proshare Nigeria Pvt. Ltd.


"Risks of a worse outcome predominate."


And the impact on the most economically-sensitive commodity is clear...

The IMF's baseline scenario assumes that the pandemic fades in the second half of this year and that containment measures can be gradually wound down.

Proshare Nigeria Pvt. Ltd.


We suspect that is optimistic and that we're gonna need more production cuts and more bailouts!

Proshare Nigeria Pvt. Ltd.

Related News

  1. OPECplus Powerless As Oil Prices Near $30
  2. Oil Supply Deal: Market Stability Desired
  3. Historic Production Cuts: Implications for Nigeria
  4. Goldman Sachs: Don't Expect Oil Prices To Rise On Historic Oil Deal
  5. Trump Wants OPECplus To Double Its Production Cut
  6. G20 Oil Nations Agree To 3.7m Bpd Cut
  7. OPECplus Agrees To Less Than 10m Bpd Cut
  8. Oil Prices Crash Towards $30 Despite Historic Cuts - OIR 100420
  9. COVID-19: Statement from the G20 Extraordinary Energy Ministers Virtual Meeting
  10. Big Egos, Poker Faces, and Deep Pockets Meet to Address Oil Glut
  11. Global Oil Producers Agree On Joint 10 Million Bpd Output Cut


 Proshare Nigeria Pvt. Ltd.

 Proshare Nigeria Pvt. Ltd.

Related News