That is a billion dollar question; how did crude traverse from $0 to $100/bbl in less than 2 years? Post the pandemic, analysts had generally predicted that demand would take a long time to recover. However, they have been proven wrong. Not only has demand picked up, but even the internecine supply wars between the US and OPEC have come to an end. In 2021, global oil demand was more than supply by 2.1 million bpd. At the end of the day, it was delay in supply revival that really spiked prices.
That is a billion dollar question; how did crude traverse from $0 to $100/bbl in less than 2 years? Post the pandemic, analysts had generally predicted that demand would take a long time to recover. However, they have been proven wrong. Not only has demand picked up, but even the internecine supply wars between the US and OPEC have come to an end. In 2021, global oil demand was more than supply by 2.1 million bpd. At the end of the day, it was delay in supply revival that really spiked prices.