These are the unprecedented circumstances which make up the current backdrop to the tanker scene where owners are normally accustomed to major volatility, but nothing quite like this. A combination of the COVID-19 virus and the failed attempt by OPEC+ to implement production cuts has meant that the world is swamped with unwanted oil. Barrel prices have sunk to loss-making levels for producers; production shut-ins are inevitable; and final investment decisions on new energy projects are definitely on hold. Exploration and production spending is likely to be down by a trillion dollars this year, said Oslo analyst, Rystad Energy.
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