"This Year's US Thanksgiving Expected to Be Quiet"... US Oil Consumption Plummets

EIA Reports 6% Drop in Oil Consumption Last Week
Thanksgiving Approaching but People Staying Home, Analysis Shows

[Asia Economy Reporter Naju-seok] As the number of confirmed cases of the novel coronavirus infection (COVID-19) rapidly increased, oil consumption in the United States sharply declined. Despite it being the Thanksgiving period, people refrained from visiting relatives and others, which was also confirmed through oil consumption data.

On the 18th (local time), the U.S. Energy Information Administration (EIA) announced that last week, oil demand in the U.S. was recorded at 8.3 million barrels per day. This is a 6% decrease compared to the previous week. Despite being just before Thanksgiving, this is interpreted as a result of Americans refraining from travel and other activities due to the impact of COVID-19.

According to GasBuddy, in previous years, about two-thirds of Americans typically traveled to meet friends or family, but this year that number dropped to less than one-third.

According to EIA's analysis, last week's oil consumption in the U.S. was 10% lower than the same period a year ago.

Although there had been optimism as oil consumption recently increased, the atmosphere has reversed due to the recent surge in COVID-19 cases.

Catholic volunteers in Brooklyn, New York, are preparing to distribute free Thanksgiving meals to neighbors.
[Image source=EPA Yonhap News]

Despite the confirmed decline in crude oil demand in the U.S., oil prices showed an upward trend.

Positive factors included news that oil-producing countries postponed the planned reduction in production cuts, originally scheduled for next year, by at least 3 to 6 months, indicating that the current level of cuts will be maintained for some time. Progress in COVID-19 vaccine development also acted as a positive factor.

On this day, West Texas Intermediate (WTI) crude oil for December delivery on the New York Mercantile Exchange (NYMEX) closed at $41.82 per barrel, up 0.9% ($0.39).

Patrick De Haan, an analyst at GasBuddy, said, "What the indicators confirm is that due to COVID-19 concerns, people are staying home and refraining from meeting acquaintances," adding, "This year will be a rather quiet Thanksgiving."

Meanwhile, Bill de Blasio, Mayor of New York City, announced that due to the rapid increase in COVID-19 cases, all public schools in New York City will indefinitely suspend in-person classes.

This content was produced with the assistance of AI translation services.