Musings on the oil price
The global pandemic, COVID-19, has had a serious impact on the oil price with demand collapsing whilst a short-term spat between Saudi Arabia and Russia meant that production did not decline as required. Oil prices hit the headlines when WTI went negative leading to many commentators suggesting that this was the death knell for oil. The market has come back into a temporary balance and this has allowed oil prices to recover some of the ground lost. We believe that this is a suitable time to look at the market and give our views on how the market could evolve.