Global oil traders Vitol and Trafigura expected oil demand would be destructed further due to the coronavirus second wave in the US and Europe.
Trafigura’s Executive Chairman & CEO Jeremy Weir estimated that the second virus wave could see roughly 1 million bpd in the US and 1.5 million bpd in Europe of demand destruction. In the short term, oil demand would likely fall to about 92 million bpd or below.
Likewise, Vitol CEO Russell Hardy also estimated that destruction in demand albeit at a smaller scale, at around 500,000 bpd on top of what was already impacted. Winter demand could drop to around 96 million bpd.
Both leaders estimated there would be rebounds of oil demand in most of Asia, led by China and India. However, both excluded jet fuel from the rebound list.
Hardy added that over the next few years, there is a possibility that oil demand in Asia would grow by about 1 million bpd.
