Crude oil glut likely to overshadow any OPEC+, US policy shifts

S&P Global Platts Analytics slashed its 2021 oil consumption outlook by 700,000 barrels per day (b/d) recently and now predicts oil demand growth of 5.8 million b/d in 2021

The oil market remains awash with crude. Potential changes in OPEC+ and US policy won't solve the industry's demand problem, while the world's key oil producers will be hard pushed to cut supply further. Only a vaccine can cure Covid-19-induced consumption ills.

Record coronavirus cases, a new wave of lockdowns across Europe and a stagnant road use trend in the US have had oil forecasters scaling back their recovery scenarios. The major European economies have seen mobility drop to its lowest since mid-June, signaling a renewed collapse in gasoline and diesel demand.

S&P Global Platts Analytics slashed its 2021 oil