If you’re waiting for the big rebound in oil prices, you might just need the patience of a tree. Oil prices are going to be dragging the bottom of the barrel for some time, if the September IEA Oil Market Report from the International Energy Agency is to be believed.
New data from the agency show global oil demand from January to July was 10.5 million barrels per day below the same period of 2019. As national lockdowns eased, there was an initial sharp recovery in demand led by gasoline, but the curve has flattened out and it is becoming increasingly apparent COVID-19 will stay with us for some time.
India is but one example of a country with a continuing upsurge in COVID-19 cases, which the IEA attributes to that nation’s August drop in oil demand, the biggest month-on-month fall since April. Meanwhile, Chinese consumption, which had provided price support since April, slowed dramatically during September and October, leaving unsold barrels piling up, acc
