The oil market has experienced unprecedented demand destruction, supply cuts and inventory builds in just a matter of weeks. Recovering from recent events will take considerably longer, IHS Markit Energy Advisory Service predicts in a new report. “It may be hard to comprehend now,” Roger Diwan, IHS Markit’s vice president for financial services, commented in a new oil market assessment emailed to Rigzone. “But barring a second wave of the pandemic, nearly all pre-COVID demand could return by the second half of 2021.” Under that scenario, Diwan envisions a “market squeeze” – supply destruction curbs the ability of supply to meet recovering demand – occurring in the medium-term. He also expects an erratic recovery period. “But make no mistake, the road to oil price recovery will likely be choppy and plagued with stop-and-go rallies and selling cycles until some level of certainty is restored,” stated Diwan. From now until […]