1Q Oil Demand Fall Expected to be Largest Ever
World oil demand will decline by the largest volume in history in the first quarter, even exceeding the declines during the 2009 financial crisis.
That’s what IHS Markit expects, according to a new industry note, which was penned by the company’s vice presidents Jim Burkhard and Dan Evans, and its executive director Das Premasish.
“Owing to the unprecedented stoppage of Chinese economic activity in February and the spread of the coronavirus disease 2019 (COVID-19) outside of China, we estimate that world oil demand in first quarter 2020 will be 3.8 million barrels per day (MMbpd) lower than a year earlier,” the note stated.
“This represents a downward revision of 4.5 MMbpd from previous estimates prior to COVID-19,” the note added.