Due to the global economic slowdown, oil demand in April will be reduced by 20 million barrels per day compared with the same period last year, and may even be more.
Earlier this week, the IEA stated that there have been some oil crises in the world before, but "no one has caused such a severe impact on the oil industry as we saw today. This shock is unique because one of the usual stabilizing factors-the consumer-cannot function. Therefore, as long as the current situation continues, the increase in demand that occurs during other oil crises is “very unlikely” to occur.
At the same time, earlier this week, oil prices hit the lowest level in 18 years, OPEC + and another organization of oil-producing countries are expected to discuss how to deal with the loss of demand.
Despite the United States' call to cut oil production by 10 million barrels per day, perhaps even 15 million barrels per day, many oil analysts are still highly skeptical about whether they can reach production cut agreements and implement such large-scale production cuts.