Quarterly Performance Commentary
Following a significantly challenged macro environment for energy during the first three quarters of 2020, the market started to see a modest recovery during the fourth quarter as oil demand picked up globally following the lifting of global lockdowns put in place during the first half of the year, coronavirus vaccine approvals, and additional OPEC+ production cut agreements. These positive developments led to an increase in WTI of approximately 21 per cent., quarter-over-quarter. Additionally, the S&P Oil and Gas Index and S&P Energy Select Index increased by approximately 39 per cent. and 27 per cent. during the same period, respectively. However, significant uncertainty around energy demand remains, and many producers within the energy sector continue to operate at reduced levels of activity as they navigate through these unprecedented market conditions. REL remains focussed on managing liquidity at the portfolio company level, while continuing to