Stalled demand and lack of COVID-19 vaccine may delay oil price recovery above $50 until 2021

SourceTimes of Oman
SectorOil & Gas
CountryGulf

With oil prices likely to remain under pressure and a price recovery above $50 per barrel not expected before the end of the year at the earliest, Gulf countries face a challenging few months in balancing their economies, according to Saxo Bank’s Head of Commodity Strategy, Ole Hansen. Speaking during an online briefing hosted by Saxo Bank, Hansen highlighted stalling global energy demand affected by COVID-19 travel restrictions, rapidly mounting oil supplies in storage facilities and Saudi Arabia’s reduction in its oil-exporting price as the key factors likely to keep the price of oil below $50/barrel until 2021.“Crude oil has been trading in a fairly stable pattern in the low $40s since June, however, we are seeing evidence in data from the physical market that there are risks emerging. Weak ...read more...