What is the negativity on the oil market today

[Gower 0]

Is it still to do with COVID-19 or something else?

[Tomasz + 1,608]

 Well global crude floating storage had another big drop last week (at ~2m b/d), bringing the total quite close to ‘normal’ levels, on @Vortexa data. The global crude oil S/D clearly is in a big deficit right now, despite fresh lockdowns. Thats current situation despite COVID.

Edited December 22, 2020 by Tomasz

[Tomasz + 1,608]

Tight oil wells drilled in 2020 down 66% vs 2019 yet EIA still forecasts production will only decrease 6.5%.

 

Edited December 22, 2020 by Tomasz

[Gower 0]

Thanks Tomasz, well I can't believe that a strain of COVID-19 is all negative, considering it currently only affects the UK. 

 

Possible to transfer to other countries, but US leading DR's are vouching that the vaccines (especially the Moderna) should be able to also deal with the new strain.

Edited December 22, 2020 by Gower

[Tom Nolan + 2,443]

The negative view on Oil is part of the great reset. 

 

[KilonBerlin + 9]

Can someone translate the question so that a non 1st or 2nd english language speaker without ever being in a english speaking region can understand it? We don't talk about negative oil prices, but we speak about Corona?! The oil market is only so "stable" thanks to OPEC+ cuts, production in the US is down by 2.1 million bpd compared to the 13.1 million bpd reported peak, it was also an all-time US Peak and I would say an all-time high from all countries (even total soviet unions late 1980's peak should have been below 13.1mbpd) but it is below the planned numbers, same for natural gas, Canada also produces but has to accept low-profit oil because of discounts and transport via the only pipeline, transport by train or other ways is too expensive now,

I can't get it that Canada never collected the money for 1 or even 2 additional pipelines (west or east, first whats shorter, than both, start in alberta and crossing all larger production regions on its way to the ocean/atlantic... there was an article about how much alone Alberta lost since <date> because of special discounts, I dont know when the oil sands size was identified and the normal conventional oil in the region and since when (price in 1985 US-$ for example?!) oil sand can be produced, supplying much during the "bad" US times after the 1970 peak which lasted 46 years and at least until mid to 2nd half of the 2000's the US production was going down but production somehow was still very high, but Canada created todays potential and production capacity after the 2008 oil price peak...so many mistakes were made, the US producing large parts of their demand with canadian imports change whole US energy policy and as long-term demand goes electric the mid and long-term oil demand in the US is not so good, short term it will take some years before that pretty few EVs will make a big change, but total consumption because of higher mileage per modern car will go down...