The recession ‘playbook’ may not work on the oil sector this time. The recession “playbook” may not work on the oil sector this time, a new BofA Global Research report has outlined. “We acknowledge all recessions across the last 20 years have had a destructive impact on oil demand and prices – in percentage terms, WTI dropped by ~40-80 percent as measured from the eve of these respective recessions,” BofA noted in the report, which was sent to Rigzone recently. “Applying such a drop to today’s Brent oil price would leave us with little more than $30 per barrel at the trough. However, our Commodity Research colleagues have already highlighted a much smaller drop to ~$75 per barrel in their recession scenario – considering much tighter spare capacities in the wake of supply destruction outpacing demand destruction in the wake of Russia’s invasion of Ukraine,” BofA added in the […]