Oil Demand Could Go Lower - How Would Houston Be Affected?

Another wave of Covid 19 could reduce oil prices again. With predictions of a second wave of Covid-19, the oil industry could show further damage. Petroleum Economist Karr Ingham says he's not sure about that.

"I see that there are some major distinctions between a new round of Covid. In the governmental response, going forward, surely would not be locking down and economy." Ingham says recovery could take a while. Worldwide slow down of transportation is a major factor in the future of oil prices. "The lack of things that tend to absorb energy products --- and transportation most notably --- will certainly put off the length of time to get on the other side of "Covid: The Economic Event."

The Rock Bottom of the Oil Downfall

Oil economy means a lot to Houston. "We lost a goodly number of jobs before Covid, but obviously the pace hastened in late March when we lost jobs in a wholesale manner. A large number of those jobs were in Houston." Ingham senses any oil effect on Houston won't happen till next year. predicts if we have a second Covid wave the country won't react as drastically as before.

"So what this looks like to me is just treading water. Holding forth for the balance of the year. Bouncing around either side of about $40 a barrel. I certainly hope to High Heaven it doesn't get a whole lot worse than that."

Photo: Getty

Oil is taking a beating from Covid-19

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