The amount of crude oil in storage tanks is expected to peak in the second quarter, before demand significantly increases around the world.Storage tanks around the world added 6.6 million barrels of oil per day during the first quarter, but that accelerated to 11.5 million barrels per day in the second quarter as shutdown orders related to the coronavirus pandemic stunted travel and economic activity, the U.S. Energy Information Administration said Tuesday.
Those shutdown orders are expected to ease around the world during summer, boosting demand and oil prices, the EIA said.
Starting in the third quarter, the EIA said, global consumption of crude oil, gasoline, diesel, jet fuel and other products will increase for at least six consecutive quarters — reducing inventories and raising prices. The price of U.S. oil was just above $30 on Tuesday.
Global consumption of oil, gasoline and other related products is expected to average 92.6 million barrels per day in May, an 8 percent decrease from 100.7 barrels per day during the same time period last year, the EIA reported.
Economic growth and global consumption of crude oil and other fuels is expected to increase in 2021 but remain lower than 2019 levels, the agency said.