In a coronavirus-lockdown second wave (CSW) scenario, this falls to US$70 per barrel.”Wang said global demand for gas this year has proved relatively resilient. But the economic outlook is inextricably linked to this recovery and a second wave would take its toll. Global LNG demand would also fall, putting further pressure on Europe to absorb the LNG oversupply – and causing further delays to LNG projects under construction,” he noted. “A second wave of lockdown measures would only increase the pressure,” Wang said. “While subdued tight oil production would provide headroom for non-associated gas producers, ensuring sustained long-term profitability for lower-cost producers, one crucial question remains: can gas producers survive another year of low gas prices?,” Wang concluded.

Source: The North Africa Journal August 20, 2020 06:45 UTC