Gulf oil producers are hopeful for a turnaround in 2021, especially that the COVID-19 vaccine will mean increased demand for energy from consumers as economies get back to normal. But a return to normalcy may take until mid-2021, as time is needed for populations to be vaccinated and a new, even more contagious strain of the coronavirus may signal that things may get worse before they get better. And then there’s the possible return of Iranian oil to market, if the Iran nuclear deal is back in force, which could depress prices.
The “big unknown” for oil markets that could cause “short-term pains” for Arab Gulf producers in 2021 is a new coronavirus strain first detected in the United Kingdom, said Colby Connelly, an analyst at Energy Intelligence, a leading provider of energy news and analysis.
