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South America Set To Struggle With Stranded Oil Assets

Sharply weaker oil prices and the COVID-19 pandemic are weighing heavily on the outlook for crude oil. It is not only U.S. shale oil and gas which will experience a wave of stranded assets because of the poor outlook for crude oil, such an event is also looming in Latin America. The latest oil rally, spurred on by hopes of a coronavirus vaccine, has seen Brent climb more than 33% since the start of June 2020 to around $49 per barrel, but that still may not be enough.

The global push to reduce emissions, decarbonize the world economy and slow climate…

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