A closer look Changing Energy Market Dynamics

Apr 30, 2020

In Brief

Supply and demand shocks have roiled energy markets as production flooded markets suffering from a massive collapse in demand due to the global coronavirus pandemic.
While oil prices may be under pressure in the near term, they are likely to rebound cyclically as demand recovers — though structural factors, including the growth of renewable energy, could influence future demand.
Lower oil prices are a mixed bag for the U.S. economy as the benefit of depressed gasoline prices for the consumer is offset by the broader shock to the economy.
While the energy sector has been a bottom performer year-to-date, it has seen some reversion. We view opportunities in the sector as selective rather than broad-based.

About the Author

Barbara (Bree) Sterne
Investment Strategist
In this role, Barbara is responsible for performing in-depth macroeconomic research and financial market analysis, as well as delivering highly customized asset allocation and investment recommendations to clients.

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