The coronavirus pandemic and resulting plunge in crude prices will result in a leaner, stronger oilNSE 7.05 % industry but raise the risk of shortages further down the line, Goldman Sachs analysts said on Monday

Crude prices suffered another sharp fall on Monday as the pandemic worsened and the Saudi Arabia-Russia price war showed no signs of abating.

Refiners across the world, meanwhile, have been forced to halt operations because of steep falls in demand that have sent traders and analysts scrambling to cut their forecasts.

“If pipelines get clogged up as re?neries shut down, inventories cannot build, reducing the cushion and creating a very quick risk reversal towards oil shortages,” Goldman said in a note.

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