This article was published in LOGI's November 2020 newsletter in partnership with Kulluna Irada.
Oil prices climbed to their highest in more than eight months, after several companies announced promising results from their vaccine trials. But according to several news outlets, a vaccine won’t solve the oil crisis any time soon. The immediate effect of a vaccine on oil prices might be short-lived, while it might take more than a year to see a steady boost of demand in the oil and gas market.
The COVID-19 pandemic may have overriding consequences on Eastern Mediterranean gas market as the demand for liquefied natural gas has shrunk during the crisis, leading to a sharp fall in prices throughout the first half of 2020. Mega fields, such as Zohr (Egypt) or Tamar (Israel), have been affected by this “unfavorable LNG market”, says Oil&Gas. The longer lasting impacts are likely to include reduced gas production until 2023, a recent report by GlobalData says.
Israel and Lebanon entered indirect rounds of negotiations over disputed maritime borders in October. But the Lebanese sides insisted that the talks, carried under US and UN auspices, did not amount to recognition of Israel. The invitation of President Michel Aoun, by Israel's Energy Minister Yuval Steinitz, to direct talks in Europe is “rare outreach”, says the Daily Star, between the two countries still officially at war.