As the coronavirus pandemic erodes fuel demand, the Energy Information Administration (EIA) said US oil demand is set to crash by 2.2 million bpd in 2020 to 18.3 million bpd.
Compared with the EIA’s previous forecast for a decline of 470,000 bpd, US crude production is expected to fall 540,000 bpd from last year’s record high to 11.7 million bpd in 2020.
From 8.6 million bpd in the January-March period, US motor gasoline consumption expected to fall to an average of 7 million bpd in April-June. In the second half of the year, the consumption predicted to gradually increase to 8.7 million bpd.
Compared with a previous forecast for a drop of 5.2 million bpd, the 2020 world oil demand now expected to drop 8.1 million bpd to 92.6 million bpd. Compared with the agency’s previous estimate for a decline of 1.2 million bpd, global supply is expected to slump to 95.2 million bpd this year, down by 5.4 million bpd.
Global oil demand is expected to rise by nearly 7 million bpd for 2021, while US oil demand expected to rise 1.5 million bpd, the agency’s monthly forecast showed. Down by about 790,000 bpd, the US crude output for 2021 is expected to decline to 10.9 million bpd while the previous forecast was a drop of 730,000 bpd.
