‘The worst is behind us’ Amin Nasser, CEO of Saudi oil giant Aramco says demand will surge back at the end of 2020

Oil prices have since recovered from the initial shock of Covid19, which pushed oil prices into negative territory for the May 2020 futures contract. There was so little demand at the time that oil purchasers ran out of storage, and were willing to pay people to take delivery on their oil instead. While it is not certain that prices will remain at these levels or move higher, there seems to be recovery in increased demand such as manufacturing activity and economies reopening across the world, helping to support current prices. However, should low prices return, they may affect the ability of oil companies to spend on capital expenditure and maintenance, as well as reduce their intention to continue operations and expansions.

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