The twin economic shocks triggered by low oil prices and COVID-19 containment measures will have a disruptive impact on renewable energy in 2020 and 2021. Further down the line, however, it will galvanise sector growth, as investors increasingly seek to diversify away from risky portfolios. Prospects will improve further if governments maintain their commitments to sustainable energy and improve their investment climates.
In recent months, the market has touted Saudi Arabia’s success in capturing a larger share of China’s crude imports, surpassing Russia as the top supplier and even reaching record high export levels this summer. This development is in part the result of recent, strategic downstream investments by Saudi Arabia in China, but equally as much a mark of economic pragmatism and shifting winds in global crude markets. The kingdom will continue to face stiff competition in supplying the Chinese market, particularly from Russia, and has further work to do to secure its longer-term competitive advantage compared to other key suppliers.