13 / 56
O
n 20 April 2020, negative pricing for the May WTI
futures contract sent a shockwave through the
energy sector. Crude oil pricing structures have
evolved over decades and have served the industry
well during periods where supply has had ample
time to adjust to long-term demand trends. They
were never designed to work in a period of demand
shock, such as that experienced worldwide in the
first four months of 2020.
Stephen B. Harrison, Nexant
Energy & Chemicals Advisory,
Germany,
considers the
COVID-crash’s potential implications
for the Asia Pacific region.
|
11