Demand for oil is likely to decrease by 23.1 million barrels per day in Q2 as oversupply and less demand worsen the price crash.
The oil and gas sector has suffered a tumultuous start to 2020 in the wake of Covid-19. Overall, the energy sector – a key pillar of many FDI strategies – is forecasted by GlobalData to face downward earnings revisions of 208% in 2020, with the shock compounded by the oil price crash.
Oil prices have decreased by around 50% since January 2020, with the US market reporting record lows. With countries on lockdown there is significantly less of all activity, and the demand for oil and gas has fallen spectacularly.