Are we now deep in the abyss? Up to our necks in it, if the oil price is any guide. Brent has now tested sub-U.S.$20 a barrel in this downturn and WTI sub-zero, albeit briefly and in somewhat freakish circumstances. Where are the signs of stress across the oil value chain? And what are the prospects of finding an exit route to recovery? First, oil demand, which we think may be close to bottoming out. Decline has been sharp and deep as COVID-19 takes its toll on global economic activity. Much of the world is currently in lockdown, with more than 65 per cent of the world’s population under travel restrictions. Global air travel and car use have nosedived in many countries. The big hit has been on jet fuel demand (down 50 per cent year-on-year) and gasoline (down 25 per cent). Diesel and fuel oil – used to […]