Forecasting of oil demand peak has become a perennial topic, as discussed in the Week in Focus of the May 11 Digest entitled "Fast forward." There are many views of when the peak will take place (or already occurred) because of the coronavirus pandemic and the magnitude of the demand decline due to competition from non-fossil-fuel alternatives. Therefore, it is challenging for firms to undertake medium- and long-term planning. As the IEA and International Monetary Fund have called for energy systems to be made cleaner and various groups have called for a "green recovery" as part of the global transformation following the coronavirus pandemic, the general consensus is mat the oil industry will be headed for an inevitable slowdown. In the week ending June 19, oil major BP lowered its long-term price assumption by 27% to $55/bbl due to the pandemic, a move that will cut up to $17.5B from the company's book value and that has raised concerns about possible stranded assets.
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