The Consolidation Of U.S. Shale

The Consolidation Of U.S. Shale

By Editorial Dept - Oct 23, 2020, 11:30 AM CDT

1. Demand stalls on COVID resurgence 

- “We think that the oil market would mount a significant rally if the flow of global demand data was strong,” Standard Chartered wrote in a note. “However, there is no fuel for any such rally currently; demand recovery has disappointed, and in some regions prospects are worsening.”

- The investment bank estimates that global oil demand in August stood at 90.39 mb/d, down 592,000 bpd from a month earlier. Demand was down 11.58 mb/d year-on-year, worse than July’s figure of down 10.61 mb/d from a year earlier.

- Looking forward, top analysts at the IEA and U.S. EIA see demand improving in the fourth quarter to down just 5mb/d from a year earlier. “We think those views may prove optimistic,” Standard Chartered wrote. “[I]t seems unlikely that the y/y gap will more than halve in the face of tighter restrictions, and in some cases a return to full lockdown.”

- The bank sees fourth-quarter demand down 7.7 mb/d from the same period in 2019.

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