EIA forecasts record high global inventory builds (4/8/2020)

The 2019 novel coronavirus disease (COVID-19) pandemic has caused significant changes in energy fuel supply and demand patterns globally. Crude oil prices have fallen significantly since the beginning of 2020, largely driven by the economic contraction caused by COVID-19 and a rapid increase in crude oil supply following the suspension of previously agreed upon production cuts among the Organization of the Petroleum Exporting Countries (OPEC) and partner countries. As a result of low demand caused by COVID-19 and high levels of global crude oil production, the U.S. Energy Information Administration (EIA), in its April Short-Term Energy Outlook (STEO), forecasts large inventory builds in 2020 followed by inventory draws in 2021. If realized, EIA's forecast global inventory builds of 3.9 million barrels per day (b/d) in 2020 will more than double the previous record of 1.8 million b/d set in 1998. ... More »