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April 13, 2020updated 14 Apr 2020 4:14am

How long will it take for the oil prices to stabilise after the COVID-19 pandemic? Poll has an answer

The onset of COVID-19 pandemic and its global spread have resulted in a fall in oil prices due to subdued demand foreseen and the price war between Russia and Saudi Arabia.

By Praveen Duddu

The onset of COVID-19 pandemic and its global spread has resulted in a fall in oil prices due to subdued demand foreseen and the price war between Russia and Saudi Arabia. The prices recovered, however, partially after hopes for an agreement between Russia and OPEC increased.

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Nevertheless, the prices will remain volatile for at least six months after the COVID-19 pandemic, as seen from the results of a poll Verdict conducted recently to assess how lasting the impact of the pandemic will be on oil price volatility.

Two-third (67%) of the respondents opined that the impact will last for six months to more than a year following the pandemic. While 36% believe the volatility will stay for more than a year following the pandemic, 31% believe that it’ll last for more than six months.

Oil price stability COVID-19

One-third (33%) of the respondents believe that the oil prices won’t be volatile for more than six months following the COVID-19 pandemic.

The analysis is based on 358 responses received between 26 March and 09 April.

COVID-19 and oil price affect ongoing upstream projects and jobs, says GlobalData

The COVID-19 pandemic and the oil price fall has resulted in Capex reductions by companies such as Woodside and Santos, according to the analytics firm, GlobalData, whose Upstream Analytics has identified certain ongoing upstream projects in Oceania that are impacted.

Immediate impacts are evident in companies’ responses to the pandemic, namely project delays and Capex reduction for the year, says GlobalData, whose Job Trends analysis shows that openings have reduced in the oil and gas sector while job closings have increased, although the long-term impact is still unknown.

Deferrals of final investment decisions and delay of ongoing developments are seen in at least 11 projects in Oceania in 2020, as tracked by GlobalData Upstream Analytics as on 08 April 2020.

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Build resilience in the face of COVID-19 disruption

COVID-19 has already affected our lives forever. The way we work, shop, eat, seek medical advice, and socialize will all be different in the future. Quite how different remains to be seen, but all industries must plan for multiple eventualities. Are you interested in actionable insights on the business challenges induced by the pandemic? GlobalData's cross-sector report analyzes the significance of this major disruptive theme across industry verticals. It provides side-by-side research of alternative datasets to present you with unique quantitative analysis of the effects of COVID-19 and how these differ across sectors. Additionally, it offers qualitative analysis of each sector and analyzes COVID-19’s impact on leading companies. Whatever your company’s imminent strategic plans, the long-lasting impact of COVID-19 must not be overlooked. Find out how to futureproof your business operations – download our report today.
by GlobalData
Enter your details here to receive your free Report.

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