INTERVIEW: Johannes Benigni on the Current State of the Oil Market
The most concerning issue oil markets are facing these days is demand; weak recovery, particularly for jet/kero, and an oversupply of middle distillates are pulling the markets down.
While several countries have announced that they have access to a COVID-19 vaccine already, it will take a while even for those countries to get people vaccinated and for it to take effect. What could boost the economy better (and sooner) are more instant testing capacities.
Even though the OPEC+ cuts seemed optimistic that they would lower inventories a few months ago, now they seem spot-on. Should OPEC+ want to support prices, they would need to cut more. However, even though current market trends are volatile, trading activities are not that alarming – the biggest problem is still demand.