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Demand is the biggest psychological headwind for oil right now.
That’s according to Helima Croft, head of commodity strategy at RBC Capital Markets, who expressed the view in a television interview with CNBC on Monday.
“I think demand right now is the biggest psychological headwind for oil. People are very concerned about the [U.S.-China] trade war. There’s still this sort of corner of the buy Wellhead market that’s concerned about a global recession and so I think that is the biggest headwind that OPEC has to overcome in trying to stabilize the price environment,” Croft said in the interview.
“I think they’re doing a lot on the supply picture, but again, the demand outlook remains uncertain,” Croft added.
In a separate television interview with CNBC on Sunday, Saudi Arabia’s Energy Minister Khalid Al-Falih said he was concerned about the volatility seen in the fourth quarter of 2018.
“I hope we can arrest it and bring it under control,” A-Falih told CNBC in the interview.
“I think early signs this year are positive. We’ve seen the fundamentals lead the markets into a positive territory and time will tell. Of course, we remain vigilant and do what we have to do,” he added.
RBC Capital Markets is part of Royal Bank of Canada, which was established in 1864. Croft, who specializes in geopolitics and energy, joined RBC Capital Markets from Barclays. Prior to that, she worked in Lehman’s Business Intelligence group, the Council on Foreign Relations and the CIA.
