• 4 minutes Europeans and Americans are beginning to see the results of depending on renewables.
  • 7 minutes Is China Rising or Falling? Has it Enraged the World and Lost its Way? How is their Economy Doing?
  • 13 minutes NordStream2
  • 2 days Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 17 hours California to ban gasoline for lawn mowers, chain saws, leaf blowers, off road equipment, etc.
  • 11 hours "Here is The Hidden $150 Trillion Agenda Behind The "Crusade" Against Climate Change" - Zero Hedge re: Bank of America REPORT
  • 18 hours "A Very Predictable Global Energy Crisis" by Irina Slav --- MUST READ
  • 22 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 17 hours An Indian Opinion on What is Going on in China
  • 23 hours Can Technology Keep Coal Plants Alive and Well?
  • 2 days Two Good and Plausible Ideas about Saving Water and Redirecting it to Where it is Needed.
  • 2 days Succession Planning in Human Resources for Vaccinated Individuals in the Oil & Gas Industry
  • 4 days Perfect Energy Storm in Europe: turning our back on fossil fuels is easier said than done!
  • 16 hours U.S. : Employers Can Buy Retirement Security for $2.64 an Hour
  • 21 hours Storage of gas cylinders
  • 4 days Nord Stream - US/German consultations
Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Premium Content

Second Wave Of COVID Could Crush Road Fuel Recovery

A resurgence of coronavirus cases in many parts of the world over the next few months will be the main hurdle to global demand for gasoline and diesel recovering to pre-pandemic levels by the end of 2021, according to senior executives at oil firms and commodity traders.   

“A second wave or a continued set of outbreaks that has an impact on demand is ... the most likely shock that the oil market needs to be considering in the next 12 to 24 months,” Giovanni Serio, global head of research at oil trader Vitol, said at the virtual Asia Pacific Petroleum Conference (APPEC), as carried by Reuters.

Many executives expect diesel and gasoline demand to return to pre-COVID-19 levels by the end of next year, but how the pandemic will pan out is the major unknown in forecasts and a significant risk to the downside in case of many localized lockdowns.

The industry professionals continue to be pessimistic about the recovery in jet fuel demand, which is expected to probably take up to three years to return to pre-crisis levels.

According to the industry executives, refiners should recalibrate their product output away from jet fuel, if possible. In addition, the industry as a whole should be ready to have storage space available to keep excess oil and oil products if the demand recovery continues to wobble with uncertainties in the pandemic.

One of the top independent traders, Trafigura, expects a “supply-heavy” market through the end of this year, with inventories building by the end of 2020 as demand recovery stalls. 

The market will get worse before it gets better, Ben Luckock, Co-Head of Oil Trading at Trafigura, said on the conference on Monday, as carried by Bloomberg. The oversupply on the market is reaching the point where chartering tankers for floating storage becomes profitable, according to Trafigura’s executive.  

By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News