Oil market optimism risks derailing its own recovery. The recent rise in crude prices toward $50 per barrel could harm demand and incentivise additional supply. The new normal is still some way off. Hopes that the Covid-19 vaccine will revive the global economy, coupled with the OPEC+ decision to delay bringing back much of the extra 2 million b/d of oil planned for January, are supporting prices for now.
Demand in key hubs – India and China – has also given the bulls something to latch on to. India appeared to turn the corner in October 2020, with oil products demand up 2.5 per cent year-on-year, ending seven straight months of decline.
