At this point, estimates of the epidemic’s impact on oil demand vary widely. S&P Global Platts sees global oil demand falling by an “almost catastrophic” 2.6 million barrels a day in February and 2 million barrels in March in its worst-case scenario. It is difficult to overestimate the importance of China to global oil balances. Gasoline, jet fuel and gas/diesel oil were expected to account for 55% of China’s oil demand this year and make up almost 60% of the growth. The loss of much of China’s oil demand growth will crush the producer group under the weight of falling oil prices, unless, collectively, they cut their output further.

Source: Washington Post February 02, 2020 07:52 UTC