Oil Prices May Recover Before 2021

Oil Prices May Recover Before 2021

From the price war between Saudi Arabia and Russia, the collapse of demand caused by the coronavirus pandemic, historic (but ultimately unsuccessful) OPEC+ cuts, to negative prices , the prospects of a crude market rebound seem dim.. Oil prices can only drop so low before demand for cheap oil by growing economies rallies prices upwards.. But today, with global consumption cut by 30% and storage capacity near its maximum, demand is not there to save oil prices just .. I predict that as the global economy starts showing signs of recovery in the fall, oil prices should get back to the high $20s or $30s.. More realistically, oil prices climb back towards $30-$35 dollars per barrel by December, and from there track the progress of the global recovery.. The lesson of the 2014 oil price plunge was that the producers were able to restructure and prioritize their operations in a way that created a more resilient oil market.. Major oil corporations have deep enough pockets to buy up the struggling smaller firms and provide the resources needed to survive in this turbulent price environment.. I am a Senior Fellow at the Atlantic Council and the Founding Principal