Signs are that the oil price will stay under pressure for years
The industry can survive a 5% drop in long-term demand, but it will find it much harder to thrive
03 May 2020 - 17:15
Who knows what the new normal for oil demand will be once Covid-19 is firmly in the rear-view mirror? Not me, that’s for sure. But it is likely to be lower than it was in 2019 and it could be that way for many years. That’s going to create overcapacity throughout the oil supply chain and weigh on prices.
While signs are emerging that we might have passed the worst of this historic oil demand rout, they’re tentative. No-one is predicting a swift recovery to where we were before the pandemic struck. Some, including Royal Dutch Shell’s CEO, Ben van Beurden, suggest oil demand may never fully recover...
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