Crude oil's run towards $50/barrel mark could run out of fuel in 2021

Covid-19 infections remain at peak levels globally, decimating demand for transport fuels, the mainstay of oil use

Oil market optimism risks derailing its own recovery. The recent rise in crude prices toward $50 per barrel could harm demand and incentivise additional supply. The new normal is still some way off. Hopes that the Covid-19 vaccine will revive the global economy, coupled with the OPEC+ decision to delay bringing back much of the extra 2 million b/d of oil planned for January, are supporting prices for now.

Demand in key hubs – India and China – has also given the bulls something to latch on to. India appeared to turn the corner in October 2020, with oil products