Consumers reacted to earlier lockdowns and continued pandemic restrictions, leading to a massive drop in demand. On the other hand, prices initially collapsed after Saudi Arabia led an assault on the U.S. shale market and engaged in a spat with Russia over prices. Set that against an acceleration in the longer-term trend away from fossil fuels in favor of renewables. Oil companies are facing a perfect storm of low prices, low demand and long-term questions about the viability of their product. Those realities will inevitably push up the cost of capital. As readers of the MetalMiner Annual Outlook report know, oil prices constitute one of three macroeconomic price drivers embedded in our metals price analysis. Oil majors struggle Two of the largest oil majors, Chevron and Exxon , have between them lost $9.4 billion in the second quarter alone. “The demand destruction in the second quarter was unprecedented in […]