Deltec Think About This Oil Is Not Gushing - Page 2

Think About This


Crude oil and petroleum product demand is returning fast . Shut-in supply , primarily from OPEC + is being bought back only incrementally . Industry caution and a global capex hiatus , even for onshore US exploration and production , limits supply in the longer term . We expect oil prices to stay strong for a long time yet , and we expect a large swathe of the energy industry to continue benefitting .
Demand for crude oil and petroleum products fell sharply as a result of the COVID-19 pandemic , inventories rose and prices fell . US crude oil inventories reached 533 million barrels in June 2020 . At one point in 2020 there was literally no place to put crude oil or products . Storage , pipelines , processing facilities and even ships were all full . The front month crude oil futures price hit - $ 37 / bl . You literally could not give oil away . Shut-ins , production curtailment , primarily driven by OPEC + Russia , and yet another bout of cost saving and investment spending cuts inexorably followed .
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