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Oil derrick pumps in Texas The pummeling received by the oil market in 2020 and a subsequent slump in the valuations of energy stocks is well documented. As the Covid-19 global pandemic triggered an economic downturn following human trauma, national lockdowns, curbs on mobility and consumption, crude oil prices took an inevitable beating. Few imagined the general economic and social malaise would plunge oil prices into negative territory, but it briefly did on April 20, 2020 . That didn’t last long; and WTI futures ended the year down 21% on levels recorded on January 2, 2020 at $48.52 per barrel, while Brent ended the year down 22% at $51.80 per barrel. Doomsday crude demand decline forecasts of 20 million barrels per day on 2019 levels also proved to be unfounded with the actual figure likely to be around 9 million bpd. While that still wipes out around a decade of demand growth , a bounce back in 2021 is likely to be just as solid helped by the easing of human and economic misery courtesy of the rollout of Covid-19 vaccines. Even if a recovery in aviation fuel demand is unlikely in the eyes of some before 2024, petrochemical, […]
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