Like a bat out of hell part two: The outlook for oil
The second in a five-part series from the BRG energy and climate practice looks at the impact of Covid-19 on the global oil market and the trajectory of its recovery.
Oil prices in the US and across the world have collapsed as a result of combined supply and demand shocks. Global oil production increased substantially after Russia’s refusal to cut production during the Opec+ meeting on 6 March, which provoked retaliatory production increases from Saudi Arabia and the UAE. As part of a one-two punch, this supply shock was followed swiftly by a massive reduction in demand. Oil consumption plunged by c.29pc in April following the declaration by the World Health Organization (WHO) on 11 March that Covid-19 had become a pandemic. The knock-on effect on benchmark spot oil prices was immediate and dramatic (see Figure 1). The economic impacts of the coronavirus
Also in this section
1 April 2026
Golden Pass’s startup offers QatarEnergy a timely boost but may also force a difficult choice between honouring disrupted contracts and capitalising on soaring spot LNG prices
1 April 2026
It is not a case of if or when, but the length and magnitude of economic damage from elevated oil prices
1 April 2026
The US-Iran conflict demonstrates the need for diversification in several senses of the word. It also exposes the limits of Washington applying pressure on major oil and gas producers it considers geopolitical adversaries
31 March 2026
Disappointing results in its bidding round are a reality check for Libya, and global exploration generally
