A bug’s life infects global crude demand,prices

摘要

As new COVID-19 cases continue being repotted around the world,crude demand and prices continue to sink.CleatView Energy Partners said in a note that 2020 oil demand would contract by 48-191K b/d from 2019 levels,depending on the infection rate of the virus.Kevin Book,ClearView Managing Director,stated,”A worldwide pandemic is a demand killer.That’s not rocket science.”Consultancy Facts Global Energy(FGE)expects 2020 oil consumption to contract by 220K b/d from 2019 consumption levels”with strong risks still on the downside...despite a major initiative now for a global economic stimulus.”FGE expects demand destruction of 2.3MM b/d in 1Q 2020 from 1Q 2019 levels although it added that it expects oil demand growth to return in 3Q 2020.The consultancy said,”The source of oil demand in its essence is very simple:producing things and moving things/people.If,as is happening now,production lines slow down or even stand still and global trade and travel stops,oil demand stops growing as well.”