Consumption of petroleum products in the United States for the period April 11-17 amounted to 14.1 million barrels per day. According to the Energy Information Administration (EIA) of the US Department of Energy, this is only slightly higher than the minimum level for the last 30 years, which was set a week earlier.
This figure is 31% below the average demand for petroleum products in the United States this year until travel restrictions and a general economic downturn were introduced due to the coronavirus pandemic.
Gasoline consumption fell most in absolute terms – by 40%, to 5.3 million barrels per day . The fall in demand for gasoline accounts for almost 54% of the total change in the consumption of petroleum products in the US, the agency notes.
The consumption of jet fuel collapsed by 62% compared with the average values before the introduction of restrictions – up to 612 thousand barrels per day. Demand for diesel fell 20% to 3.1 million barrels per day.
This situation will lead to massive bankruptcy of US oil companies
It is not surprising that the price of June futures for WTI oil fluctuates around $ 18.5 per barrel. Pioneer Natural Resources CEO Scott Sheffield said that such a price would lead to massive bankruptcy of US oil companies.
“We need $ 30 per barrel to survive. 20 dollars will mean 80% of bankruptcies of companies, 250 thousand people will lose their jobs. Yes, with $ 30 the industry will be seriously damaged. But at least she will survive in anticipation of the end of the coronavirus and restoration of demand by the end of 2020, “Sheffield said.
In this regard, US President Donald Trump considers it necessary to implement a long-term plan to support the country's oil and gas companies. In the near future, given the price of WTI, they really need help.
“We will never fail the great American oil and gas industry. I commissioned the Minister of Energy and the Minister of Finance to develop a plan that will make available funds so that these very important companies and jobs are secured in the future for a long time, ”Trump wrote on Twitter. : ///
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