The COVID-19 pandemic has been particularly tough on the oil industry, and it appears as though the impacts will be felt well beyond the immediate future. According to BloombergNEF, peak fuel demand will come sooner than previously predicted, with gasoline demand peaking in 2030 and on road diesel demand peaking shortly after in 2033. While there are other factors in play, COVID-19 certainly appears to be expediting the process.
Just last week, India was hit with the 1st cyclone of the season. Cyclone Amphan struck West Bengal directly wiping out any structure within reach. Amphan’s path of destruction included farmland, schools, businesses, and homes. 10 million people have been affected and 500,000 have lost their homes due to the cyclone. This storm is especially unique because India has recently been on “lockdown” of sorts due to the COVID-19 pandemic. A disaster like this is forcing the intermingling of people that have previously been practicing the social distancing concept to flatten the COVID-19 curve. 3 million people were successfully evacuated prior to the storm, but the balance would rather try to fight off mother nature instead of being confined in a small space. It was a true case of “pick your poison”.