COVID-19 results in a 20% decrease in oil demand so far

March 23, 2020
Owning the Energy Transition More...
Average importance

The oil industry is facing an unprecedented drop in demand as a result of the global measures against COVID-19. While it is too early to assess the impact properly, early indications by traders suggest a 20% drop in demand. The only other time with a demand decrease was in 1980, during the recession following the second oil crisis. That was "just" a mild 5% dent compared to current events. In a sense, the current demand decrease is a preview of demand projections for 2030 and beyond. As an example, Barclays projects a global peak in oil demand between 2030 and 2035 followed by a steady demand reduction. Clients should watch how oil companies respond, as it will reveal vulnerabilities to decreasing demand and consistently low prices.

For the original news article, click here .

Further Reading

AMS's forecast of Q2 performance is too optimistic

News Commentary | April 30, 2020

AMS's share jumped 22% after it reported its excellent Q1 performance with a revenue of $501 million and a margin of 20% and forecasted an optimistic second quarter. Despite the global pandemic, AMS's outstanding performance in Q1 is not surprising for two reasons: 1) the impacts have delays; 2) the... Not part of subscription

Lanxess develops bio-based MDI prepolymer – key for shrinking PU's carbon footprint

News Commentary | August 20, 2020

Feedstock volatility is a long‑term issue that hurts margins and necessitates alternatives in the polymers market. Due to planned and unplanned shutdowns, the price of isocyanates (a key component to PU) reached record highs. At the start of 2020, MDI prices further increased, citing higher raw ... Not part of subscription

Genius 2020: Leveraging Crisis

State of the Market Report | September 25, 2020

A crisis of epic proportions is upon us. Many of the fundamental assumptions we have held true about human health, free markets, the nature of work, consumption, and movement of people and goods ‑ to name but a few ‑ are being stressed to points previously unthinkable. Given the magnitude of change ... Not part of subscription