A new report by two analysts at Robeco discusses sustainability trends in energy credits, especially in the era of Covid 19. The analysts acknowledge the demand collapse that is keeping crude oil, and accordingly alternatives fuels, at very low values. Their focus is on what lies ahead for energy credits.
Frances Pang and Guido Moret make the point that it is not merely Covid-19 that has shocked the energy markets in recent months. They also give space to the failure of OPEC to reach an accord with Russia in March. Relations within “OPEC+” continue to be tricky. Recent reports have OPEC and Russia together demanding that producers that exceeded quotas in April and May compensate by extra cuts through the third quarter.