Like a bat out of hell part two: The outlook for oil
The second in a five-part series from the BRG energy and climate practice looks at the impact of Covid-19 on the global oil market and the trajectory of its recovery.
Oil prices in the US and across the world have collapsed as a result of combined supply and demand shocks. Global oil production increased substantially after Russia’s refusal to cut production during the Opec+ meeting on 6 March, which provoked retaliatory production increases from Saudi Arabia and the UAE. As part of a one-two punch, this supply shock was followed swiftly by a massive reduction in demand. Oil consumption plunged by c.29pc in April following the declaration by the World Health Organization (WHO) on 11 March that Covid-19 had become a pandemic. The knock-on effect on benchmark spot oil prices was immediate and dramatic (see Figure 1). The economic impacts of the coronavirus
Also in this section
19 January 2026
Newfound optimism is emerging that a dormant exploration frontier could become a strategic energy play and—whisper it quietly—Europe’s next offshore opportunity
16 January 2026
The country’s global energy importance and domestic political fate are interlocked, highlighting its outsized oil and gas powers, and the heightened fallout risk
16 January 2026
The global maritime oil transport sector enters 2026 facing a rare convergence of crude oversupply, record newbuild deliveries and the potential easing of several geopolitical disruptions that have shaped trade flows since 2022
15 January 2026
Rebuilding industry, energy dominance and lower energy costs are key goals that remain at odds in 2026
