Pundits are looking for oil prices to start heading "north" and with the world now wary of covid_19 pandemic measures, the opening up of cities could result in this coming true. However, it seems that the impact of alternative fuels and renewable energies is not taken into account along with the massive business rescues and job losses.
The International Energy Agency (IEA) in its latest Oil Market Report (April 2020) notes that market stability should return in H2 of 2020 as by then they expect demand to exceed supply. In the same month, the Executive Director of the IEA (Fatih Birol) pointing out to Reuters that renewables and other "clean energies" need to be the focus of stimulus plans going forward. This in light of a year on year demand drop of 9.3 million barrels per day and an OPEC planned cut of 9.7 million barrels per day (IEA).
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his suggestion to utilize stimulus packages (such as the suggested USD 9.3 trillion for the USA) for long term capital benefits along with other measures, makes sense as it allows for a dual benefit of an improved energy mix while contributing to a low carbon trajectory. Now remember, any low carbon or de-carbonization action results in reduced demand for oil as it provides an energy alternative. Thus, however we look at it, the future demand for oil will reduce.
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IEA (2020), Oil Market Report - April 2020, IEA, Paris https://www.iea.org/reports/oil-market-report-april-2020
https://www.reuters.com/article/us-health-coronavirus-energy/put-clean-energy-at-heart-of-stimulus-plans-ieas-birol-idUSKCN22632V