Energy & Science
Global Oil Use Heads for Record Annual Drop as Virus Spreads
- Government action to stop travel and socializing cuts demand
- Analysts say this year could see bigger drop than in 1980
Oil pumping jacks, also known as "nodding donkeys", stand in an oilfield near Almetyevsk, Tatarstan, Russia.
Photographer: Andrey Rudakov/BloombergThis article is for subscribers only.
Global oil consumption is in free-fall, heading for the biggest annual contraction in history, as more countries introduce unprecedented measures to fight the coronavirus outbreak.
Travel bans, work-from-home, canceled vacations and disrupted supply chains all mean reduced demand for fuel. As societies respond to the virus, oil demand -- already hammered by China’s decision to shut down swathes of the economy -- is falling further. Oil traders, executives, hedge fund managers and consultants are revising down their forecasts dramatically.