OPEC’s Shock Cut Is a Capitulation to Oil’s Drop: David Fickling

000 daily barrels already declared by Russia last month, knocks bullish forecasts for oil consumption on their head. Most had been expecting the current sluggish conditions, which drove Brent crude to a 15-month low March 19, would be replaced by voracious appetites from consumers in the second half of the year as air and road traffic finally recovered to pre-pandemic levels.

Demand in the December quarter would rise to 103.5 million barrels a day, the International Energy Agency reported last month, 2.2 million barrels above its current levels and well ahead of supply. Those conditions should in theory be sufficient to ...