Five things to watch in 2021 after oil’s wild ride this year

Financial Times David Sheppard

As the industry’s turbulent year draws to a close there are signs of a nascent recovery

The oil sector was hit harder than almost any other by the pandemic.

Crude prices fell from near US$70 a barrel at the beginning of the year to below US$20 in April as lockdowns slashed fuel demand. Prices even briefly turned negative in the U.S.

After a short but highly damaging price war, OPEC and Russia enacted record supply cuts to stabilize the market. But even then, companies were forced to rip up investment plans while European energy majors started to look to a greener future.

As the industry’s turbulent year draws to a close there are, however, signs of a nascent recovery. Crude has crept back to US$50 and some investors are betting that the oil cycle is turning, even as expectations of peak demand loom over the horizon.

full story at https://financialpost.com/financial-times/five-things-to-watch-in-2021-after-oils-wild-ride-this-year

Categorised in: Canadian News