9 Sep 2020

JBC in the Media - CNBC

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.