In hope of greater market certainty

The key questions for 2021’s oil markets remain tough to answer. But milestones on the road will make the picture clearer

Coronavirus has dominated the oil markets this year, and the same is expected for next year. Front-month Ice Brent prices surged by $10-12/bl in early December compared with end-of-October levels, trading at c.$47-49/bl, the highest prices seen since March. Markets have been buoyed by positive developments on Covid-19 vaccines, which are expected to boost the global economy and oil demand through the second half of 2021. From a demand perspective, oil traders are simultaneously dealing with two extremes: a potential worsening situation in the coming few months from coronavirus infections, the global economy and oil demand, but, in the second half of next year, the exact opposite. At this ear