Similar to how the U.S. has been handling coronavirus restrictions, Europe is planning to add localized restrictions to curb the increase of infections. The World Health Organization’s (WHO) regional director of Europe, Hans Kluge said, “7 European countries caseloads have doubled in the past two week and over half the European countries have reported a greater than 10 percent increase in the past two weeks.” Kluge also said that the majority of the increase has been seen in the younger population but there has been an increase in the older demographic as well.
The most recent WTI drop of 2.9% is the largest in a month. Supply versus demand continues to be a curious topic that is the main driver of the current crude oil situation. Oversupply of crude oil in 2020 continues as just in the past few days in the North Sea there are a combined 12 cargoes that have yet to find a buyer suggesting slow demand is taking place in the region.
After 5000 Universities and Colleges recently reopened across the U.S., new hotspots of coronavirus cases are emerging. States such as South Dakota and Iowa are beginning to see an uptick in confirmed cases resulting in uncertainty when we might see progress made with offsetting the virus.
Oil and gas explorations remain sluggish and failing to rebound as expected. At $40+ a barrel and positive market indicator would historically promote conditions for the industry to recover, however there has been no indication of a recovery to speak of. The new normal seems to be a slim, budget conscious, and efficient industry soup to nuts.