The Organization of Petroleum Exporting Countries alliance have made steep reductions in production, and this artificial scarcity by countries such as Saudi Arabia and Russia has accelerated oil prices significantly. However, demand for oil does not seem to be following the same route as the decrease in oil production, with oil demand rising by about 1.4 million barrels a day every week in June. However, as the economy has experienced such a drastic downturn, demand for diesel is lagging as its primary use is to power industries and freight movements, rendering it useless in these times. And of course, one does not need to emphasise the depression of the demand for jet fuel as it remains stagnant since the climax of the Covid-19 crisis.
Writer: Insha Hamid
24/06/2020
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