Vaccine Rollout Snags Stifle Energy Demand Rebound
(The views and opinions expressed in this article are those of the attributed sources and do not necessarily reflect the position of Rigzone or the author.)
Although the pace at which the pharmaceutical industry has developed COVID-19 vaccines has garnered widespread praise, the rate at which individuals have been vaccinated has drawn some criticism. The recovery in energy demand hinges largely on the success of the vaccine rollout, and complications in various vaccination programs are affecting the rebound’s trajectory, point out two of Rigzone’s regular oil market-watchers. Read on for their perspectives.
Tom Seng, Director – School of Energy Economics, Policy and Commerce, University of Tulsa’s Collins College of Business: Now that the Biden/Harris team has been officially certified as the winners of the 2020 U.S. presidential election, the markets will attempt to ascertain exactly what the new administration’s impact will be on the oil industry. The speed, or lack thereof, of the vaccine rollout will play an important role in determining just how quickly energy demand will rebound in the coming months. Also, it will be interesting to see how high oil prices will rise without a substantial increase in demand and, if they do continue their upward path, just how long the Saudis will maintain their output cuts.
Jamie Webster, Senior Director, Boston Consulting Group Center for Energy Impact: But for the coming week the focus is again on demand, for while vaccines are now in distribution mode, the pace is insufficient to reverse the downward movements in mobility as well as the resurgence in multiple jurisdictions for more lockdowns. It may be a new year and the solution to the vaccine is now in hand, but pandemic’s impact on demand is far from over.
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