Most forecasters show a major decline in demand - - PowerPoint PPT Presentation

most forecasters show a major decline in demand for 2020
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Most forecasters show a major decline in demand - - PowerPoint PPT Presentation

Most forecasters show a major decline in demand for 2020. However, there is still great uncertainty about the duration and severity of COVID- 19, which will likely impact how large a


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Most forecasters show a major decline in demand for 2020. However, there is still great uncertainty about the duration and severity of COVID- 19, which will likely impact how large a an effect that COVID-19 will have. It may represent a major decline in demand or a short- term response to an economic pullback.

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China’s General Administration of Customs estimated that, despite the effect of the coronavirus, China’s crude oil imports remained at 10.52 MM barrels/day in January and February 2020. Import data for March is not yet available. China averaged 10.1 MM barrels per day in crude oil imports in 2019 according to the EIA.

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West Texas Intermediate (1Y Lookback) (current as of 03/31/2020) Current: 03/31/2020: $20.85 Highest: 04/22/2019: $66.30 03/08/2020: Saudis initiate price war following breakdown in negotiations with Russians

Source: CNBC

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  • At the end of 2019, worldwide production and consumption were nearly equal. The EIA is

forecasting that there will be an inventory buildup in 2020, followed by inventory draws in 2021.

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  • Source: Bloomberg
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