Oil prices have collapsed by more than half this year, to $23 per barrel today for West Texas Intermediate crude. But now is not yet the time to buy oil — because the worst is yet to come. Gasoline demand is set to plunge 50%, while jet fuel consumption has all but evaporated, with 87% fewer flyers taking to the air versus a year ago.
Every doomsday forecast is more dire than the last. Amrita Sen at Energy Aspects this week forecast a 10 million barrel per day drop in petroleum demand this April. Jim Burkhard at IHS Markit sees a gap between oil supply and demand widening to 12 million bpd in the second quarter.
