Oil Demand To Plunge By 10 Million Barrels Per Day

The central bank will purchase  $500 billion in Treasury securities and $200 billion in mortgage-backed securities.

As major economies go into lockdown, oil demand continues to fall off a cliff. On Monday, WTI fell into the $20s.

“The additional quarantine measures imposed in France, Spain and elsewhere over the weekend has spurred a ‘world championship’ in demand loss forecasting this morning,” Bjoernar Tonhaugen, Rystad Energy’s head of Oil Markets, said in a statement.

A week ago, the U.S. was doing very little. In just a few days’ time, there has been a proliferation of school cancellations, mass gathering prohibitions and mandatory telework orders. Restaurant closures are next. Pretty soon much of the country will be on some form of a lockdown.

The Federal Reserve slashed rates to near zero over the weekend, using up all of its ammo to head off as economic recession and financial crisis. The central bank also said that it would purchase “at least $500 billion” in Treasury securities and “at least $200 billion” in mortgage-backed securities.

https://www.oilprice.com/

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