• 4 minutes Nord Stream 2 Halt Possible Over Navalny Poisoning
  • 8 minutes America Could Go Fully Electric Right Now
  • 11 minutes JP Morgan says investors should prepare for rising odds of Trump win
  • 7 mins US after 4 more years of Trump?
  • 2 days Daniel Yergin Book is a Reality Check on Energy
  • 57 mins Something wicked this way comes
  • 3 days Permian in for Prosperous and Bright Future
  • 7 mins Oil giants partner with environmental group to track Permian Basin's methane emissions
  • 1 hour Why NG falling n crude up?
  • 2 days Famine, Economic Collapse of China on the Horizon?
  • 3 days Gepthermal fracking: how to confuse a greenie
  • 3 days YPF to redeploy rigs in Vaca Muerta on export potential
  • 3 days Top HHS official takes leave of absence after Facebook rant about CDC conspiracies
  • 18 hours The Perfect Solution To Remove Conflict Problems In The South China East Asia Sea
  • 2 days Open letter from Politico about US-russian relations
  • 4 days Surviving without coal is a challenge!!
Should You Buy Into This Oil Rally?

Should You Buy Into This Oil Rally?

Technical and fundamental factors are…

Why GM’s Wireless Battery Could Be A Gamechanger

Why GM’s Wireless Battery Could Be A Gamechanger

General Motors recently revealed its…

Editorial Dept

Editorial Dept

More Info

Premium Content

Gasoline Demand Is Set For A Rapid Rebound

Friday, May 15, 2020

1. IEA: Gasoline demand will come back quickly

- The IEA said in its latest Oil Market Report that global oil demand hit its nadir in April (-25.2 bm/d), and will still be down by 21.5 mb/d in May. But the agency has a somewhat optimistic take on demand recovery for the rest of the year.

- In the U.S., for instance, gasoline demand was down 12 percent in March, year-on-year, and 40 percent in April. But in May, demand will be down 25 percent, and only 15 percent in June.

- In the second half of the year, gasoline demand “returns to normal,” the IEA said.

- But that assumes “no continued impact from confinement measures,” which, to say the least, is a rather large caveat.

2. U.S. and OPEC+ shoulder cuts

- Non-OPEC supply has already declined by 3 mb/d since the start of the year, with more in the offing, according to the IEA.

- Total global supply is set to plunge by 12 mb/d in May, a combination of shut-ins and the OPEC+ cuts. At 88 mb/d, production will be at the lowest level in 9 years.

- By the fourth quarter, U.S. supply could be down 2.8 mb/d compared to the end of 2019.

- Drilling activity in U.S. shale is at a record low. “[W]e think that the last time there was so little drilling activity in the US was the 1860s during the first decade of the Pennsylvania oil boom,” Standard Chartered analysts said in a note.

3. Storage crisis eases

-…





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News