Leading oil demanding sectors in the OECD 2020

Road transportation is the greatest oil demanding sector in OECD (Organisation for Economic Co-operation and Development) member states. In 2020, 48.6 percent of all oil consumed in the OECD was related to motor vehicle usage. By comparison, the petrochemical sector which manufactures plastics, resins, and other petroleum-based products, accounted for 16.2 percent.

Global crude oil demand

The United States and China are the greatest oil consumers worldwide. In 2020, daily oil consumption in these countries amounted to 17.2 million barrels and 14.2 million barrels, respectively. Daily global crude oil demand, including biofuels, reached 100.1 million barrels in 2019, following years of steady growth. However, due to economic constrictions and mobility impacts as a result of the coronavirus pandemic, daily oil demand decrease by nearly 10 million barrels in 2020. Further, these changes are projected to extend until the end of 2021, as travel and tourism activities are not expected to see a fast recovery.

Crude oil prices

As demand fell across the world so did major crude oil prices. In April 2020, the West Texas Intermediate (WTI) benchmark recorded its lowest ever daily closing price, at negative 37.63 U.S. dollars per barrel. Although it has since recovered to around 50 U.S. dollars, these prices are still far lower than those seen pre-Covid and threaten the long-term health of the oil industry.