June 2020 Monthly Floating Production Systems Report
The global oil market is gradually recovering. Oil prices have rebounded to the low $40s as supply cuts of OPEC+ and gradual return of economic activity rebalance oil supply and demand. But the effects of the Covid-19 crisis and oil supply glut continue to seriously dampen investment appetite in the oil and gas sector. New deepwater project starts have been on hold and we expect this situation to continue into the third quarter of this year. Looking further out, we expect oil prices to continue to increase over the next six months and see a gradual pickup in deepwater activity beginning late 2020/early 2021. Deepwater project starts in Brazil, Guyana, Australia and (maybe) Nigeria will be in the vanguard of production floater orders as the rebound begins. All is discussed in the June WER report.