Oil: At the crossroads of supply and demand

By Erik Norland, Senior Economist, CME Group

Oil: Supply-Demand Dynamics as Vaccines Emerge

• Growth in US, Europe, and Japan lag pre-pandemic levels; China improves.
• Oil demand could rebound as vaccines become available, boost travel.
• Fiscal support is needed to bolster consumer spending in 2021.
• Could escalating COVID-19 cases pressure oil prices in the short term?

Can Supply Keep Pace With Any Demand Spike in 2021?

• Q4 growth could be affected by rise in COVID-19 cases.
• Vaccine could boost 2021 oil demand as travel picks up.
• Can oil supply keep pace with any increase in demand next year?
• Fiscal stimulus is central to generating economic growth in 2021.