Entering a new era:global oil market to be forever changed by price rout

摘要

The one-two punch of the cotonavirus pandemic's impact on petroleum demand and the breakdown of the OPEC+ alliance will likely forever change the landscape of the global oil market.Many industry figures believe that the price war between Saudi Arabia and Russia has had a more significant impact to the oil market,and that US President Donald Trump's attempts to have both sides agree to cuts may have been too late because of the delay before the market response to the 15MM b/d in cuts.In the US,80MM bbl in storage at Cushing,OK will soon run out of space as volumes still entering the market.Furthermore,S&P Global Platts Analytics believes that global oil demand could fall by at least 20MM b/d,or 20% of consumption in 2019,by May,which could cause storage at Cushing to reach capacity within three weeks.According to the US government domestic production will likely fall by 660K b/d by 2021 from peaks levels of 13.2MM b/d in 2019.