After two weeks of back to back losses, oil prices continue to decline, a sign that the bears have a tight grip on the market. Dropping below the psychological $40 mark has traders on Wall Street wondering how deep the price decline could go as fears about a coming second wave of Covid-19 grow. There are two clear forces at work in the price decline and they both relate to the oil supply-demand balance forecasts. On the demand side, the market is at much better levels since the first wave of the Covid-19 pandemic and "Black April." But one thing is clear—demand has not recovered to the extent that the market had hoped for, and demand forecasts remain flat in the coming months. Global oil demand still sits below 90 percent of the pre-pandemic level of 100 million ...read more...
SectorOil & Gas