The recovery is going to take more than 2 months, thats safe to say. But the oil price disaster has already culled quite some capacity from the market so we don’t need a full 100 MMbbl/d recovery. Plus, there will be increased consumption from personal vehicles and some other sectors. So, the total picture is complicated. But it’s pretty safe to say that the misery that has been proclaimed from every rooftop just about 3 weeks ago won’t last for very long. Yes. ATI at 30 is hardly bullish but how long did we stay sub-20? I the grand picture it will be meaningless. Some weak players have been culled which is going to strengthen those remaining. This is an issue to be dealt with for sure – but being petrified in fear is not the right response. Oil and gas will be back with a vengeance.
Oil prices rallied on Monday morning as traders see more signs of recovery in the markets, but the physical oil markets isn’t out of the woods yet