Last modified: June 21 2021
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. 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.
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. 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.