Chart of the Day: How strong is US oil demand?
Summary
Figure (1) above shows trends in US oil demand since 2018. It shows a strong start for US oil demand in the first four months of the year to the extent that the demand in April was the highest in the last 6 years.
The chart shows how the COVID-19 lockdowns in 2020 reduced demand significantly (by more than 5 mb/d)
EOA’s Main Takeaway
How strong is US oil demand? The answer depends on the starting point and the accuracy of weekly data. However, two facts are clear:
Prices and recessions affect demand.
It takes a long time for demand to recover after recessions.