During the first phase of the Coronavirus pandemic,
beginning from the spring, in Europe and America, the demand - and the
production of oil - went down and it was perfectly understandable.
During the second phase, although things relatively
improved with a slight decline in deaths, the situation still is nowhere near
normal.
Since the hope of a vaccine – and evolving data that
boosts it – seesaws on a PR hinge, there is a strong possibility of the world
going into a third phase too, whatever out politicians say.
That means the recovery of oil prices and the
production may be slow, but will not be on a downward spiral, as it happened
during the first phase of the pandemic.
The combination of ‘unknowns’ evolved into a gloom
of epic proportions and sent price crashing down even below zero; it was
short-lived, though.
As this is the case, it’s unfortunate to read into
the data that stems from a period of uncertainty and make inferences from it.
This seems to be what some over-excited Green enthusiasts do, while grabbing
the data from these periods.
They appear to imply the downward trend is more to
do with falling demand due to environmental concerns than an unavoidable
development due to Coronavirus pandemic.
That’s not the worst; they think it is perpetual!
The data manipulations of this kind continues,
despite the factors that really matter, say otherwise: time and again, a few
serious reports indicated that fossil fuels are not going away in the next few
decades to come.
It is reported that even in Canada, the main source
of energy will be from fossil fuels for about three more decades. Canada is a
nation that takes environmental issues seriously and is progressive in its
dealings, when it comes to addressing the issue.
The reality, however, is crude oil will be in demand
for decades to come, as there will not be a reliable substitute for it - for a
long time.
For oil charts that matter, please click the following:
