Energy experts allow new shocks in the global economy

Alexey Gromov, Principal Director on Energy Studies, commented to News.ru on the mid-term prospects on the world oil market’s development.

Alexey I. Gromov, Principal Director on Energy at the Institute for Energy and Finance, believes that the new lockdowns introduced in the countries of the world indicate that a pessimistic scenario is coming true. The key consequence of the aggravation of the pandemic in the EU and the United States will be slowing the pace of global economic recovery, Gromov predicted. According to his forecast, the world will return to the pre-crisis indicators of consumption of liquid hydrocarbons no earlier than 2023. In such a situation, one should not expect sharp positive price trends in the oil and gas market.

The hydrocarbons price is assumed to account for the demand and the OPEC + deal. If the deal stands the test of time and continues in 2021, a slow recovery in oil prices can be expected. If OPEC + ceases to exist, as well as in conditions of a slow recovery in demand, it is worth preparing for new unpredictable collapses in prices, Gromov explained.