At a time when the energy sector is weighed down by debt and reeling from low commodity prices, American energy producers are now bracing for the biggest demand shock to hit the markets in decades: the effects of the coronavirus outbreak in China and beyond.
China consumes 13 of every 100 barrels of oil that the world produces, and global oil companies are likely to feel the heat to some extent. Bloomberg has reported that Chinese oil demand has dropped by about 3 million barrels a day, or ~20% of total consumption.
The drop marks the largest demand shock in the market since the global financial crisis that ended in 2009. It’s also the most sudden shock the market has suffered since the Sept. 11 attacks nearly two decades ago.
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China consumes 13 of every 100 barrels of oil that the world produces, and global oil companies are likely to feel the heat to some extent. Bloomberg has reported that Chinese oil demand has dropped by about 3 million barrels a day, or ~20% of total consumption.
The drop marks the largest demand shock in the market since the global financial crisis that ended in 2009. It’s also the most sudden shock the market has suffered since the Sept. 11 attacks nearly two decades ago.
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