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
22 November 2024
The Energy Transition Advancement Index highlights how the Kingdom can ease its oil dependency and catch up with peers Norway and UAE
21 November 2024
E&P company is charting its own course through the transition, with a highly focused natural gas portfolio, early action on its own emissions and the development of a major carbon storage project
21 November 2024
Maintaining a competitive edge means the transformation must maximise oil resources as well as make strategic moves with critical minerals
20 November 2024
The oil behemoth recognises the need to broaden its energy mix to reduce both environmental and economic risks
