S&P GLOBAL PLATTS | The glut in the oil market could prove stubborn to shift. Potential changes in OPEC+ and US policy won't solve the industry's demand problem, while the world's key oil producers will be hard pushed to cut supply further. Only a vaccine can cure COVID-19-induced consumption ills.
Record coronavirus cases, a new wave of lockdowns across Europe and a stagnant road-use trend in the US have forced oil forecasters to scale back their recovery scenarios. The major European economies have seen mobility drop to its lowest since mid-June, signaling a renewed collapse in gasoline and diesel demand.
S&P Global Platts Analytics slashed its 2021 oil consumption outlook by 700,000 b/d recently and now predicts oil demand growth of 5.8111 million b/d in 2021, putting any revival well below pre-COVID-19 levels.
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