, Columnist
Irrational Exuberance Hits the Oil Market
There are many reasons to stay cautious about a recovery in oil demand, and Covid-19 is only one of them.
Storage tanks are still full.
Photographer: Rodger Bosch/AFP via Getty Images
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Covid-19 vaccines are raising hopes of a swift recovery in oil demand next year, but markets seem to have thrown caution to the wind.
Brent crude hit $50 a barrel last week, its highest level since March, before the Covid-19 pandemic really began to tear a hole through people’s lives and economic lockdowns hammered oil consumption. This looks like irrational exuberance given there’s such a long way to go before crude oil markets get back to normal.