The Oil Market in the Era of Demand Crunch
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  • RESEARCH
    • CENTRES
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Dossier
The Oil Market in the Era of Demand Crunch
Eugenio Dacrema
20 April 2020

First the China-US trade war, then the coronavirus pandemic. The global economy is suffering from increased instability in international politics and the sudden emergence of global “black swans”. The impact of this new situation on oil prices has been deep, and risks deepening: notwithstanding a first Opec + agreement to cut production, US Oil prices have plunged today, hitting a historic low. Although temporary production cuts can offer some short-term relief to oil producers, it appears that they can hardly solve the global demand crunch. A new era of stagnant oil prices has begun, and its political effects may reveal deeper than the economic ones.

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Tags

energy MENA coronavirus
Versione stampabile

EDITED BY

Eugenio Dacrema
Co-Head, ISPI MENA Centre

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