We have never seen a collapse like this. US Oil Consumption In April it fell off a cliff to plumbing depths that had not been reached since 1983. At that time, the US economy was emerging from a painful period of inflation and leaving years behind. of economic recession. The numbers, according to new data from the US Energy Information Administration, are probably the lowest point in US demand after the coronavirus virtually closed large swaths of the country.
The drop occurred in almost all types of oil use, from automotive gasoline to asphalt and lubricants. Petrochemicals, used for products like plastic bags and masks, were one of the only petroleum-based products to experience a slight rebound.
We have yet to see this effect on supply in the official numbers. World oil demand collapsed by a third in April. However, suppliers can only do so much to adjust their immediate production. In the US, the accident backed up oil supplies through the system as storage tanks and refineries began to reject new orders. Initially a landmark moment, benchmark crude prices for West Texas Intermediate fell into negative territory on April 20 before recently recovering to around $ 40 a barrel.
