After Hurricane Delta, “there’s definitely going to be a lag between the return of production and the return of refinery operations. That’s going to add to a surplus of crude oil in the gulf and put another weight in prices.” Yawger added. Normally, the per-barrel price for healthy profits is around $50.
Currently, oil gluts are felt all over the globe, even in Europe. Saras SpA, an Italian oil producer, furloughed its entire workforce according to reports. Even the Organization of Petroleum Exporting Countries (OPEC) struggled to adapt to lowering demand as fewer folks travel and drive to work due to lockdowns.
Unfortunately, as long as COVID-19 continues to be a reality, the chances of the oil industry rebounding to pre-pandemic levels are relatively slim, especially as infection numbers continue to rise in various locales.
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