Oil optimism could be derailed by coronavirus risks, Dan Yergin says

Oil optimism could be derailed by coronavirus risks, Dan Yergin says

SINGAPORE — Oil producer group OPEC left its 2021 forecast for crude demand growth unchanged on expectations of an economic recovery. But that could change, warns energy expert Dan Yergin.Yergin, vice-chairman at IHS Markit, told CNBC on Friday that a lot hinges on how effective the coronavirus vaccines are, and whether the number of Covid-19 cases continue to surge.Hopes of increased oil demand were also lifted on Thursday when U.S. President-elect Joe Biden released a hefty $1.9 trillion Covid-19 rescue package designed to support households and businesses.In addition to the stimulus package, two factors have also fueled optimism, Yergin said. "There are two other things that are going with it … one is of course, vaccinations — in the sense that eventually this crisis is going to end, and maybe by the spring, lockdowns will be over.""The other thing is what Saudi Arabia did. This is the third time Saudi Arabia has made a sudden change in policy in less than a year, and this one was to announce (the) 1 million barrel a day cut — partly because they are worried about the impact of the surge in virus that's occurring," he said.If the vaccines were not as effective