Saudi Arabia and Russia were launching their market share salvos to glut the market with oil to spite the other. This as the global economy listed sharply due to coronavirus fears and taking some estimated 20-25 MMbbl/d out of demand. Now they’re trying to put that supply genie back in the bottle. But will it matter?

Unfortunately, scant little. At least in the near term.
Oil and Gas Investor’s May cover story will analyze the first wave of the COVID-19 induced demand destruction and OPEC+ instigated supply surge, but that is just the first chapter of this epic drama that will take months and likely years to unfold entirely. Realistically, the world needs to recover from the coronavirus before the oil markets are going to return to any kind of a semblance of yesteryear’s prices led by renewed demand. And if the bug takes hold again for a round two, timing is anyone’s bet.

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