Saudi Arabia’s decision to flood the market with crude oil at a time when demand is in doldrums amid coronavirus pandemic is about to create a massive supply-demand imbalance, says BIMCO’s Chief Shipping Analyst, Peter Sand.

Liquid fuels production and consumption will be imbalanced during much of 2020 with total production estimated at 102.2 million barrels per day (m bpd) in Q2 compared to estimated consumption of 100.3m bpd, data from US EIA shows. This implies an inventory buildup of 1.9m bpd.