Oil Demand Has Collapsed, And It Won't Come Back Any Time Soon

2020 is shaping up to be an extraordinarily bad year for oil.

In the spring of 2020, pandemic lockdowns sent oil demand plummeting and markets into a tailspin. At one point, U.S. oil prices even turned negative for the first time in history.

But summer brought new optimism to the industry, with hopes rising for a controlled pandemic, a recovering economy and resurgent oil demand.

Those hopes are now fading. In a report Tuesday, the influential advisory body called the International Energy Agency revised its forecasts for global oil consumption downward, warning that the market outlook is "even more fragile" than expected and that "the path ahead is treacherous."

It's the latest in a flurry of diminished forecasts from major energy players. On Monday, oil cartel OPEC slashed its expectations of oil demand, just as Trafigura, a large oil trading company, warned that another large oil glut is building.