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While gasoline demand may bounce up and down, it is important to remember that no one is pumping petrol out of the ground. It is a component of crude oil and so
by evgen 5y ago
While gasoline demand may bounce up and down, it is important to remember that no one is pumping petrol out of the ground. It is a component of crude oil and so some fraction of the crude oil demand is being pushed forward by ICE users. If the push stops then demand for crude will drop until some other fractional component user picks up the slack. What will be interesting to see is which fraction will end up hitting a floor first and setting the price -- maybe kerosene (jet fuel) but given the attention upon that fraction recently in terms of global warming I do not see it expanding much, so cutting petrol demand 30%+ could really push crude production down an almost equal percentage.