Oil demand dropped between 50-70% due to movement restrictions in the UK
Most dealers have to cancel new orders in a reaction to the demand decline, as their reserves of already purchased petrol and diesel keep piling up. Due to the movement restrictions, traffic sharply declined, what affected oil consumption in the country.
Yet, drop in demand for petrol and diesel is not evident only in the UK. Many other countries, which implemented movement restrictions as a measure to fight coronavirus epidemic, experience the same situation. Moreover, lower automotive fuels consumption directly affects basic raw material for fuel production – oil. Brent oil is currently traded below $30 per barrel.
According to International Energy Agency (IEA), the situation may even worsen. As the movement restrictions now concern around 3 billion inhabitants, neither oil demand nor its price will rise any time soon. IEA even predicts that global demand for the black oil could further plunge – up to 20%.