Reduced economic activity resulting from shelter-in-place restrictions due to COVID-19 drove significant near-term disruptions to energy markets in the month of April with U.S. petroleum demand falling nearly 27% to 14.2 million barrels per day (b/d), according to data released in the American Petroleum Institute’s April 2020 Monthly Statistical Report. Gasoline deliveries fell more than 31% in April to their lowest level since 1972, while jet fuel posted its largest monthly decline on record, falling nearly 56% to 0.6 million b/d. On a weekly basis, total U.S. petroleum demand rebounded by 1.6 million b/d as of May 1 after appearing to bottom out during the second week of April.
On the supply side, U.S. oil-targeted drilling fell a record 52% over the past two months as producers adjusted output to align with this historic decline in demand. Domestic oil production fell 0.9 million b/d in April to 12.0 million b/d, which combined with reductions in natural gas and other liquids output, amounted to the largest monthly decline in U.S. total liquids supply on record.