The big question facing the oil industry is when will demand come back – The National

The big question facing the oil industry is when will demand come back – The National

The big question facing the oil industry is when will demand come back. Estimates of demand decline are progressively more pessimistic, as the pandemic spreads. Estimates of demand decline are progressively more pessimistic, as the pandemic spreads, worsens in the US and elsewhere, and more countries impose quarantines.. Eighty per cent of global air travel, normally using about 7.3 million barrels per day (bpd) of fuel, is shut down.. Shipping, consuming some 5 million bpd, is less-affected, but demand may be down about 8 per cent currently and could fall further.. The oil industry's use of 5 million bpd of its own products will also fall as production and refining are reduced.. There is still demand for diesel, used in ships and delivery trucks.. The Opec+ deal with Russia, which would have removed some 1.5 million bpd of supply, and the boost in output planned by Saudi Arabia and its allies, adding perhaps 4-5 million bpd, have become almost a sideshow to the epic demand collapse.. At 20 million bpd oversupply, the remainder will fill within three months.. Saudi Arabia is targetting supplying 12.3 million bpd, above Aramco's 12 million bpd capacity, which implies it would be drawing on storage..