Energy & Science
China Oil Demand Has Plunged 20% Because of the Virus Lockdown
- Executives describe privately the scale of the demand shock
- Oil falls to a one-year low as OPEC weighs its response
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Chinese oil demand has dropped by about 3 million barrels a day, or 20% of total consumption, as the coronavirus squeezes the economy, according to people with inside knowledge of the country’s energy industry.
The drop is probably the largest demand shock the oil market has suffered since the global financial crisis of 2008 to 2009, and the most sudden since the Sept. 11 attacks. It could force the hand of OPEC and its allies, which are considering an emergency meeting to cut production and staunch the decline in prices.