Goldman Sachs predicted a sharp drop in oil demand

US, WASHINGTON (ORDO NEWS) — Global oil consumption will drop by 26 million barrels per day, or 25% this week, as social distance measures to contain the coronavirus currently affect 92% of global GDP, according to a review by analysts at Goldman Sachs, a Bloomberg news agency.

Bank analysts Jeff Currie and Damien Courvalin, according to the agency, note that oil demand is declining faster than anyone had predicted, and production in the United States, Russia and Canada is most vulnerable to this.

The report said that oil companies in the world announced the conservation of wells, the production of which is at least 900 thousand barrels of oil per day. At the same time, it is expected that the real figure is likely to grow every hour.

“The final scale of well closure, which is still unknown, is likely to forever change the oil and gas industry and its geopolitics,” experts say.

The World Health Organization on March 11 announced an outbreak of a new coronavirus infection COVID-19 with a pandemic. According to the latest WHO data , more than 634 thousand cases of infection have been recorded in the world, almost 30 thousand people have died.

The global economy, including oil demand, has come under pressure due to the current situation. Against this background, oil prices have already fallen more than twice since the beginning of the year.


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