• 3 minutes Will Iron-Air batteries REALLY change things?
  • 7 minutes Natural gas mobility for heavy duty trucks
  • 11 minutes NordStream2
  • 11 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 9 hours U.S. Presidential Elections Status - Electoral Votes
  • 21 hours Evergrande is going Belly Up.
  • 1 day Is China Rising or Falling? Has it Enraged the World and Lost its Way? How is their Economy Doing?
  • 11 hours Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 4 days Poland Expands LNG Powered Trucking and Fueling Stations
  • 4 days World’s Biggest Battery In California Overheats, Shuts Down
  • 3 days The unexpected loss of output from wind turbines compels UK to turn to an alternative; It's not what you think!
  • 15 hours Forecasts for Natural Gas
  • 3 days Ten Years of Plunging Solar Prices
  • 3 days Extraction of gasoline from crude oil.
Strong Dollar Keeps Lid On Oil Price Rally

Strong Dollar Keeps Lid On Oil Price Rally

Oil prices rose this week…

China Oil Consumption Seen Peaking In 5 Years

China Oil Consumption Seen Peaking In 5 Years

China's oil consumption could peak…

Lockdowns And More Lockdowns Threaten Oil Demand

After parts of Europe went into lockdown again last week, a new wave of lockdowns throughout the world are threatening to tamp down oil demand yet again—and just when things were starting to look up for oil.

On Wednesday, Sweden implemented a partial lockdown shutting down bars and restaurants—for the first time since the pandemic started. For Sweden, who has so far tried to get by with implementing voluntary measures, this is big news.

Across the ocean in New York, Governor Cuomo ordered all bars, restaurants, and gyms to close by 10 p.m. He also capped private gatherings at just 10 people. The changes will go into effect on Friday.

Next door in New Jersey, Governor Phil Murphy put similar measures in place, telling all bars that bar seating would be banned indefinitely, and telling restaurants that they must shut down dining areas at 10 p.m. Outdoor dining will steel be allowed after 10 p.m., but with high temps headed below 60 degrees this weekend, and below 50  degrees next week, the outdoor dining is expected to be sparse.

Oil prices were seemingly undeterred at the lockdown developments, which will have at least some impact on oil demand.

At 2:23 p.m. ET, WTI was holding strong at $41.61, up $1.32 (3.28%) on the day, while Brent crude was up $1.45 (3.42%) on the day at $43.85.

Oil prices rallied earlier in the week after Pfizer announced that it had a 92% success rate in a trial for a Covid-19 vaccine. Prices were bolstered even further when OPEC member Algeria suggested that OPEC+ could deepen the group's production cuts come January.

But the vaccine won't improve oil demand today. Today, we have lockdowns and more lockdowns, which will have an immediate negative effect on transportation fuel in general as more people stay home in the evening hours.

By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment
  • Eerikki peltokorpi on November 12 2020 said:
    I dont think that closing bars and gyms will be in big role on oil consumption, most energy is still used on transportation and production, now as big players have adjusted the production to the level that they can make money not losing it. and small ones are going belly up. The energy sector seems healty as it can be. Investors for my perspective did jump mayby too early on vaccine news, or at least too high, as the news game out. but if those semi lockdowns on gyms and nightlife works and we dont get any total lockdowns witch will shutdown the transport and keeps people home on 4 walls, my bets are semi-buy, and hold long.

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News