A look back at 2020 in global oil markets: The MUFG Global Markets Podcast

Many in the oil industry are glad to see the back of what has truly been a whipsaw year. Uncertain IMO 2020 regulations. Heightened geopolitical risk premium. The once-in-a-lifetime, unparalleled COVID-19 pandemic spread collapsing demand. An all-out oil price war amongst Saudi Arabia and Russia to gain market share by flooding the world with oil supplies. Draconian lockdowns sending prices into freefall.  A historic OPEC+ phased production agreement of 9.7m b/d (~10% of global supply) to reverse course and support prices over defending market share. Finally, the dizzying risk-on momentum from the euphoria over vaccine efficacy.

Ehsan Khoman, Head of MENA Research and Strategy, contextualises the key themes that shaped global oil markets in 2020 and offers insights into how the tumultuous developments over the course of the last twelve months could have long-lasting implications as we begin to form new contours of normality towards a post-virus equilibrium.

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