Demand for Canadian oil is rapidly dwindling. The fact is that the US is the main consumer of Canadian oil. The neighboring countries have been arranging mutually beneficial trading deals for many years. Sometimes, they even act as allies protecting their interests. However, relations between the two countries have soured amid the coronavirus outbreak. The virus lockdown in the US resulted in the extremely low demand for oil, including Canadian one. Thus, Canada has almost lost its main consumer. At the moment, the US is not able to sell even its own reserves. That is why it is obvious that the country does not need some extra supply. The oil price war that turned out to be short but very harmful allowed the US to buy a large amount of cheap oil. It means that oil demand is likely to be incredibly sluggish despite a new OPEC+ agreement. In general, the coronavirus pandemic has severely hit the oil market. Demand for crude oil and its products was nosediving. Moreover, the quarantine led to a slump in gasoline sales. The current daily oil demand is 25 billion barrels lower than its production. The market oversupply triggered a tumble in oil prices and forced leading oil producers to call an emergency meeting and agree on output reduction for the next two months.
