Oil Market Recovery: Bulls vs Bears

Last week the IEA described the oil markets as ‘fragile.’ In contrast, the price of oil has soared back from all time lows (and negative pricing) to its pre-COVID levels. This week Peter and Jackie discuss the arguments of the bulls and the bears.  The bears are focused on weak oil demand, slow vaccine roll outs and prolonged lockdowns.  The bulls see beyond this near-term fragility to the demand recovery. Next, we consider the climate impacts of constraining North American oil production.  Rating agencies are downgrading oil and gas companies because of climate risk.   New permits for oil and gas drilling on US Federal lands are paused. The presidential permit for the KXL pipeline is canceled.  But how do these actions reduce GHG emissions and fight climate change? Subscribe to the Energyphile email to learn about future book club events. In Total’s recent investor outlook, slide 14, they present an outlook for a 10 MMB/d shortfall in oil supply by 2025. Please review our disclaimer at: https://www.arcenergyinstitute.com/disclaimer/  The post Oil Market Recovery: Bulls vs Bears first appeared on ARC Energy Research Institute.