March 30, 2020
GET IT BACK TO $4 A GALLON WITH TAXES:
Oil demand could decline by 20 million barrels a day in April, says oil expert Dan Yergin (Abigail Ng, 3/30/20, CNBC)
It's a golden opportunity to speed the end of oil and the Oil Curse."Cars not on the road, airplanes not in the air, factories not working, people not going to work," Yergin said. "We see, in this month of April that's coming, what could be a 20 million barrel a day decline in oil demand.""It's unprecedented. That's six times larger than the biggest downturn during the financial crisis period (in 2008)," he added.World oil demand in 2019 stood at around 99.67 million barrels a day, according to OPEC's estimate.While demand is set to fall, major producers such as Saudi Arabia and Russia have announced they will increase supply in April after the OPEC+ agreement expires at the end of March."This is what people are now looking at ... where are you going to put all of the oil?" he asked. When oil storage runs out, prices could fall further, he added. "I think the prices that we're seeing, that you're talking about today are really precursors ... April is going to be a very difficult month."
Posted by Orrin Judd at March 30, 2020 12:00 AM