According to the view that limits oil price increases, it is said that global oil demand is unlikely to be supported by the launch of vaccines against COVID-19 until 2021.
It is too early to know how and when vaccines will allow normal life. For now, forecasts do not expect a significant impact in the first half of 2021. The negative picture of demand and increased production in some countries shows that the current fundamentals are not strong enough to provide a solid support for prices.
Brent crude fell 0.8% to $43.46 a barrel in early London trade.
While Covid-19 infections are breaking records in Europe and the United States, reducing demand expectations. Assuming that there are no new waves of the pandemic, the increasing expectations for China and India are tolerating each other for now.
It is predicted that OPEC and its allies’ plans to increase production by 2 million barrels per day in January 2021, including Russia, will mean that supply will exceed demand.