Young Research & Publishing Inc.

Investment Research Since 1978

Compensation was paid to utilize rankings. Click here to read full disclosure.

  • About Us
    • Contributors
    • Archives
    • Dick Young’s Safe America
    • The Final Richard C. Young’s Intelligence Report
    • You’ve Read The Last Issue of Intelligence Report, Now What?
    • Dick Young’s Research Key: Anecdotal Evidence Gathering
    • Crisis at Vanguard
  • Investment Analysis
    • Bonds
    • Currencies and Gold
    • Dividend Investing
    • ETFs & Funds
    • Investment Strategy
    • Retirement Investing
    • Stocks
    • The Efficient Frontier
  • Investment Counsel
  • Retirement Compounders®
  • Free Email Signup

Oil Demand Recovery as the World Reopens

May 15, 2020 By Jeremy Jones, CFA

By Thaiview @ Shutterstock.com

The Wall Street Journal reports that oil demand is rising again as the world reopens after its coronavirus induced shutdown, writing:

Oil consumption is rising again in those parts of the world emerging from coronavirus lockdowns, helping to alleviate a global glut and rebalance a market stymied by months of low demand and a devastating rout that saw prices drop as much as two-thirds this year.

Green shoots of an oil recovery are sprouting with regions of China attempting a semblance of normal life as lockdowns are eased and parts of Europe and the U.S. allow businesses to reopen.

“We see early signs of a gradual rebalancing of oil markets. It is still gradual and it is still fragile,” said Fatih Birol, the International Energy Agency’s executive director. This year will still be the worst on record, he added.

The world is expected to consume 21.5 million fewer barrels a day this month compared with a year ago, the IEA said in its monthly oil report Thursday.

Brent crude oil gained 6.6% to close at $31.13 a barrel on Thursday and West Texas Intermediate futures for June delivery rose 9% to $27.56. The WTI July contract gained 8.6% at $27.88 a barrel. Both Brent and WTI remain more than 50% below their late-2019 levels.

The easing of restrictions coincides with massive, coordinated production cuts from oil-producing nations including Saudi Arabia, Russia and the U.S. As a result, global onshore oil inventories, which had been rising continuously since the beginning of the pandemic in January, fell by 2.2 million barrels in the week to May 8, according to commodities analytics company Kpler.

Read more here.

Share this:

  • Email
  • Twitter
  • Facebook

You Might Also Like:

  • BP: World Running out of Oil Demand
  • Oil Market Turbulence
  • Shale Oil Production Explosion
  • Author
  • Recent Posts
Jeremy Jones, CFA
Jeremy Jones, CFA, CFP® is the Director of Research at Young Research & Publishing Inc., and the Chief Investment Officer at Richard C. Young & Co., Ltd. CNBC has ranked Richard C. Young & Co., Ltd. as one of the Top 100 Financial Advisors in the nation (2019-2022) Disclosure. Jeremy is also a contributing editor of youngresearch.com.
Latest posts by Jeremy Jones, CFA (see all)
  • Money Market Assets Hit Record High: $5.4 Trillion - May 26, 2023
  • The Mania in AI Stocks Has Arrived - May 25, 2023
  • The Wisdom of Sam Zell - May 24, 2023

Search Young Research

Most Popular

  • Mr. Protect and Preserve: For Where We’re Going
  • Paris's Big Plans for the Champs-Elysées
  • The Power of a Compound Interest Table
  • A Plan for Cutting Federal Government Spending
  • Vanguard Wellesley (VWINX) vs. Wellington (VWELX): Which Fund is Best?
  • California Mandates Drive Diesel Truck Buying Spree
  • Americans Are Not Happy with Bidenomics
  • Robot Warehouses Need Better Internet
  • Wellington and Wellesley Funds Not Managed by Vanguard
  • Don’t Ask Me When to Haul Your Boat

Don’t Miss

Default Risk Among the Many Concerns with Annuities

Risk and Reward: An Efficient Frontier

How to be a Billionaire: Proven Strategies from the Titans of Wealth

Cryptocosm and Life After Google

Warning: Avoid Mutual Fund Year End Distributions

Is Gold a Good Long-term Investment?

How to Invest in Gold

Vanguard Wellington (VWELX): The Original Balanced Fund

What is the Best Gold ETF for Investing and Trading?

Procter & Gamble (PG) Stock: The Only True Dividend King

The Dividend King of the North

You’ll Love This if You’re Dreaming of an Active Retirement Life

The Importance of a Balanced Portfolio

Invest with Peace of Mind and Comfort

What Kind of Life Are You Investing For?

RSS The Latest at Richardcyoung.com

  • California – First to Enact Statewide Gun and Ammo Tax
  • “No Way I’m Spending That Much on Those”
  • How Much Can Grid Battery Storage Help?
  • Fighting Russian Power with a Hill of Crosses
  • “You Didn’t Eat That Again, Did You?”
  • Does Donald Trump Need the Pro-Life Vote?
  • What’s Happening with Iran?
  • L’Eau de France: A Fight for France’s Water
  • Speaking of Bad Ideas …
  • The Single Worst Market Timing Event in History

RSS The Latest at Yoursurvivalguy.com

  • “No Way I’m Spending That Much on Those”
  • What Trade Policy Serves America’s National Interest Best?
  • California Wants to Make the 2nd Amendment Unaffordable
  • “You Didn’t Eat That Again, Did You?”
  • Is McCarthy Up to the Task?
  • Rising Costs Are Hammering Commercial Real Estate
  • Your Survival Guy Fishing with Dolphins
  • Judge Shatters California High Capacity Magazine Ban
  • Is Your Water Safe to Drink? NOLA Residents Aren’t Sure
  • Wellington and Wellesley Funds Not Managed by Vanguard

About Us

  • About Young Research
  • Archives
  • Contributors

Our Partners

  • Richard C. Young & Co.
  • Richardcyoung.com

Copyright © 2023 | Terms & Conditions

 

Loading Comments...
 

    loading Cancel
    Post was not sent - check your email addresses!
    Email check failed, please try again
    Sorry, your blog cannot share posts by email.