Oil demand was down 5% in the first quarter according to the IEA. The disconnect due to the oil price collapse lessened the effect to a 4% decline in crude tonne mile demand. That disconnect is greater in the second quarter. The effect of the March price crash has yet to be seen in the published data.
It’s interesting to note the relative strength of product tankers. Tonne mile demand is up 16% in Q1 compared to the same quarter last year. However quarter on quarter growth shows a 4% rise. It’s been a very confusing period with Coronavirus, IMO2020 and the oil price collapse all happening at the same time. Overall fuel oil was down 6% and Gas oil (diesel) was the clear winner up 13%. Diesel is probably the least affected oil product as countries entering lockdown saw people switching to home deliveries. The USA seems to be increasing market growth of the products market sector particular in gas oil….