No doubt you were getting dizzy following oil, so you thought you needed to sit down. But wait—you have been sitting down for about eight weeks now. From a number below zero to $25/bbl or so, Brent finally got above $30—crude’s been on a wild ride. Disneyland may not be open, but the reality show unfolding in the oil patch provides more than enough thrills. However, note that in early May when Disneyland Shanghai reopened, the park sold out in a few minutes.
It’s one sign that cities around the world will get back to business, although the economic recovery will be uneven and take time. We have to bet on pent-up demand. The recovery appears to be V-shaped in most markets. We hope to see that in the energy world as well.
“This is an event-driven correction that we’re in right now. We expect there will be an economic recovery behind it … and with that, demand for the product we produce,” said Marathon Oil Corp. CEO Lee Tillman on the company’s first-quarter conference call.