The global oil market is going through an extraordinary period. The twin shocks of a significant increase in global supply and a remarkable fall in oil demand appear to have no parallel in history. Together, the collapsed OPEC+ agreement and the coronavirus outbreak have put OPEC and the value of its role in the market back into the spotlight. As KAPSARC has previously studied and written, OPEC’s ability to measure and offset oil market shocks through the use of its spare production capacity has been a substantial stabilizing force, perhaps reducing oil price volatility by as much as half. However, the scale of the current disruption is too big for OPEC to rebalance the market alone.
Andrew Stanley is an energy content and data visualization specialist at KAPSARC. Working as a bridge between the Communications and… Andrew Stanley is an energy content and data visualization specialist at KAPSARC. Working as a bridge between the Communications and Research departments, Andrew leads efforts to improve the accessibility and reach of KAPSARC’s research content. Previously he was an Associate Fellow at the Center for Strategic and International Studies (CSIS) in Washington, DC, where he covered oil markets for the Energy and National Security Program. His work has been widely published online, in academic journals, and referenced in outlets such as the Financial Times, Bloomberg, and Platts. He has also previously worked at KPMG and Shell.