The whole world has become accustomed to gloomy news about the US rising debt, weakening greenback, and so on and so forth. The latest alarming prediction is the upcoming collapse of the US and then the global oil market.
According to analysts, the global oil market will soon see a slump and the US will be the first to face the catastrophe. Despite suffering a severe blow, the US will not allow the quotes to reach the pre-crisis levels neither this nor next year. Martin Fraenkel, president of S&P Global Platts, supposes that by the end of 2020, global oil demand may tumble by 8 million barrels a day. It will be a larger contraction compared to the previous years.
At the moment, despite the OPEC+ deal, demand for oil is extremely low. There are a lot of factors that halt the consumption of oil.
Experts at OPEC also agreed with this theory. Moreover, they have already downwardly revised their forecasts for oil demand in the following year. Economists emphasize that oil producers, including the US, are very susceptible to various factors. Global oil demand is dropping amid numerous containment measures whereas oil reserves are rising.
