Mid-Week Review – August 5, 2020

Low Oil Prices Will Boost Consumption

Without a doubt economic growth and income are the primary drivers of oil consumption, but price is the most important secondary element. It’s not that a price crash will encourage consumers to leave their cars running in the driveway, but on the margin, it will make them less inclined to save gasoline, especially if it costs money. Click here to read more from Forbes.

Oil Prices Climb After Lebanon Blast

Oil climbed to the highest level in nearly two weeks after an explosion at Lebanon’s main port rocked the capital Beirut, stoking fears over instability in the region. Footage showed what appeared to be a fire, followed by crackling lights and then a larger explosion as an enormous cloud of smoke engulfed the area around the Port of Beirut. Click here to read more from Rigzone.

Oil Prices at Five-Month High on Big Drop in U.S. Crude Stocks

Oil prices rose to their highest since early March on Wednesday after data showed a big drop in U.S. crude inventories, although concerns that mounting coronavirus infections will lead to reduced fuel demand capped gains. Click here to read more from Reuters.

U.S. Oil Production Won’t Make A Comeback Under Current Prices

The U.S. economy is expected to have shrunk by 32.9% in Q2-2020 according to a recent statement by the head of the U.S. Federal Reserve. The expectation of sluggish demand is weighing on the economic stimulus package proposal currently debated in the U.S. congress. Furthermore, the impact of this economic stimulus remains questionable as the number of jobless people in the United States remains considerably high. Click here to read more from Oilprice.com.