Don’t be spooked by scary oil stories – ZAWYA

Don’t be spooked by scary oil stories – ZAWYA

Don't be spooked by scary oil stories | ZAWYA MENA Edition HomeMarketsCommoditiesArticleDon't be spooked by scary oil stories In trying to make sense of how this pandemic will change the energy market it is important to look to the data rather than the narrative    Image used for illustrative purpose. A view of the Johan Sverdrup oilfield in the North Sea, January 7, 2020. Carina Johansen/NTB Scanpix/via REUTERSThe Paris-based International Energy Agency (IEA) predicted an unsatisfying outcome for OPEC+ since its inception in 2017. Indeed even after the group of oil exporters achieved early success in balancing the market, it has continued to publish pessimistic forecasts.The initial focus was on a number of bearish scenarios created around the surge in shale oil which we were told would neutralize the impact of the OPEC+ cuts.Last year the organization focused on the adverse impact of US-China trade tensions on global oil demand.While pursuing this negative narrative, and before the impact of the coronavirus pandemic on oil demand became palpable, the IEA glossed over many important questions such as whether US shale producers would increase their production amid the drawback in drilling rigs that had already started by the end of 2019.Indeed, it