ADVERTISEMENT
Stronger Demand Is Behind the Oil Price’s Rebound
The Brent crude price has bounced from about $40 per barrel in mid-2020 to more than $50.
05 Jan 2021, 02:15 PM IST 
Workers use a bucket to collect a sample of crude oil at a multiple well platform in an oilfield in Russia. (Photographer: Andrey Rudakov/Bloomberg)
(Bloomberg) -- The Brent crude price has bounced from about $40 per barrel in mid-2020 to more than $50, with stronger demand behind the rebound as progress on Covid-19 vaccinations promises a return to normality. Bloomberg Economics splits the change in price into demand and supply drivers and estimate that a demand pick-up accounted for $25 of the gain over the last six months. Higher supply has weighed on prices, though, subtracting $15 per barrel.
©2021 Bloomberg L.P.