In the US, the world’s largest oil-consuming nation, the same data shows road journeys beginning to approach pre-pandemic levels as more states open up ahead of the summer driving season. Road congestion in Beijing is back to normal.
The price of US Gulf Coast 87 octane CBOB – the most liquid wholesale gasoline grade traded in the US – had increased by around 133pc as of May 14, from its lowest point this year, according to S&P Global Platts assessments.
With most of the global aviation industry remaining grounded and consumers still reluctant to use public transport, the internal combustion engine may enjoy a renaissance.
Saudi Arabia and Russia have played their part in averting disaster by agreeing to call off their ruinous price war by agreeing to cut production.
Oil supply is now on course to drop by up to 13 million barrels per day in the second quarter, according to S&P Global Platts Analytics. The kingdom – which needs prices to trade above $80 per barrel normally to fund its budget – doubled down this month on its commitment to do whatever it takes to rebalance the oil market by announcing its intention to cut another one million barrels from its daily supplies starting in June.
The willingness of Riyadh and the Kremlin to compromise after much cajoling by Donald Trump, the US president, could signal a new era of even closer collaboration with Opec to manage global oil markets.
Shale shocked
Meanwhile, the US shale revolution has temporarily been put on hold with demand crashing to a record low in April.