North American Oil Demand is Collapsing: Western Canada Needs to Get Ready

In big parts of Canada and the United States, people are being asked to stay home to avoid spreading Coronavirus. This week we review the latest information on COVID-19 infection rates and the implications for North American oil demand. With the United States being the only export market for Canadian oil, the rapid collapse of demand in key consuming regions ripples all the way up the pipelines to Alberta’s oil fields and shut-ins of Canadian production are possible. While shut-ins are occurring as a result of low prices, they may not happen fast enough or at the magnitude needed to avoid exceeding storage levels.

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