The response to COVID-19 has sparked a remarkable demand destruction event: supply chains halted as the need for oil dropped significantly amid travel bans and local quarantines. At the same time, a global price war and failure of OPEC and non-OPEC producers to meaningfully cut production quickly has led to an oversupply and storage glut of crude oil. Coupled together, these two events are resulting in a very imbalanced supply/demand scenario, shifting geopolitics for energy exporters, and a massive sell off in oil markets with increasing volatility. As economies begin to experiment with gradual reopenings and demand begins to trend upward, markets continue to struggle with global uncertainty.
The KPMG Global Energy Institute, in conjunction with Eurasia Group, invites you to listen to the next discussion in this webcast series on the possible impact of COVID-19 on the energy industry.