Darius McDermott: Slick on supply, dry in demand

The perfect storm

clock • 4 min read

Whatever happened to those headlines about oil running out in the next 20, 30 or 50 years? Asks Darius McDermott, who takes a look at the commodity through an investment lens

Those headlines seem a distant memory after last week when the price of a barrel went below zero in the US for the first time in history - leaving plenty of oil traders in a very uncomfortable position. 2020 has been a perfect storm for the commodity. Just before lockdown there was a supply war with Saudi Arabia and Russia, which took the price of oil down to $20-25 a barrel - from $60 at the start of the year. With supply rising exponentially, the coronavirus has then completely pulled the plug on demand, as the world basically stopped moving. As we know, most oil is traded in ‘paper...

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