The U.S. oil industry is facing the dual shockwaves of falling demand and increased supply as a result of global efforts to slow the spread of the novel coronavirus (COVID-19) combined with an oil price war driven by Russia and Saudi Arabia. Major airlines are canceling thousands of flights due to international travel bans, demand from China has dropped dramatically, domestic fuel sales have fallen due in part to widespread “shelter in place” orders in California and other states, and many businesses have had to curtail operations or close entirely due to the outbreak. As a result, the International Energy Agency has predicted that global oil demand will decline for the first time since 2009.
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