Global Oil Market Supply/Demand
Posted: Mon Jun 18, 2018 10:08 am
On 6/12/2018, Reuters reported Venezuela's state-run PDVSA and partners have halted operations at two upgraders that convert extra-heavy oil into exportable crude and plan to stop work at two others, according to six sources close to the projects, a move aimed at easing the strains from a tanker backlog that is delaying shipments. Venezuela's problems exporting oil this month led PDVSA to notify customers it would begin seaborne transfers in an attempt to ease a bottleneck at its ports, where more than 70 vessels are waiting to load about 23 million barrels of oil. PDVSA also told clients they could not send new tankers until the ships waiting to load were serviced. In the January-April period, Venezuela's crude production fell to the lowest annual average in over three decades and oil exports fell 28% to 1.19 million b/d. The export troubles are rising as the cash-strapped nation faces claims on its assets from creditors, and an outflow of skilled workers and energy service companies due to hyperinflation and unpaid bills.
On 6/13/2018, Reuters reported oil demand will grow steadily in 2019 thanks to a solid global economy, but the world may face a large supply gap by late next year if OPEC cannot cover any supply shortfalls, the IEA said on Wednesday. The IEA said it expects global oil demand to grow by 1.4 million b/d in 2019, to top 100 million b/d by the second quarter of the year. The agency expects demand to grow at the same rate this year, unchanged from its last report in May. "A solid economic background and an assumption of more stable prices are key factors. Risks include possibly higher prices and trade disruptions. Some governments are considering measures to ease price pressures on consumers," the Paris-based agency said in its monthly report. "There is the possibility of a downward revision to our economic assumptions in the next few months. The world economy is feeling some pain from higher oil prices." "Increasing trade tensions are the main risk to our oil demand forecast," the IEA said.
On 6/14/2018, Reuters reported OPEC and its allies could agree to gradually increase oil production starting from 7/1, the Russian energy minister said on Thursday after talks with Saudi Arabia in Moscow. OPEC, Russia and other producers meet in Vienna next week to decide whether a pact curbing output needs to be adjusted in order to rein in oil prices that topped $80 a barrel last month. Russian Energy Minister Alexander Novak said after talks with Saudi Energy Minister Khalid al-Falih in Moscow that both nations "in principle" supported the gradual exit from the deal. "We in general support this but specifics we will discuss with the ministers in a week," he told reporters, adding that one option would involve gradually hiking output by 1.5 million bpd, possibly starting from July 1.
On 6/15/2018, Reuters reported Beijing surprised oil markets with threats to levy tariffs on imports of U.S. crude oil, natural gas and other energy products on Friday, just as China has risen to the top of the list of importers of oil from the U.S. China responded to $50 billion in tariffs imposed by U.S. President Donald Trump with a similar amount of levies on a variety of U.S. goods. But China also said it would impose tariffs on U.S. energy products, which analysts considered a surprise as previous tariff threats had centered on agricultural goods and automobiles. China currently imports about 363,000 b/d of U.S. crude. It also takes in an additional 200,000 b/d of other products like propane.
On 6/13/2018, Reuters reported oil demand will grow steadily in 2019 thanks to a solid global economy, but the world may face a large supply gap by late next year if OPEC cannot cover any supply shortfalls, the IEA said on Wednesday. The IEA said it expects global oil demand to grow by 1.4 million b/d in 2019, to top 100 million b/d by the second quarter of the year. The agency expects demand to grow at the same rate this year, unchanged from its last report in May. "A solid economic background and an assumption of more stable prices are key factors. Risks include possibly higher prices and trade disruptions. Some governments are considering measures to ease price pressures on consumers," the Paris-based agency said in its monthly report. "There is the possibility of a downward revision to our economic assumptions in the next few months. The world economy is feeling some pain from higher oil prices." "Increasing trade tensions are the main risk to our oil demand forecast," the IEA said.
On 6/14/2018, Reuters reported OPEC and its allies could agree to gradually increase oil production starting from 7/1, the Russian energy minister said on Thursday after talks with Saudi Arabia in Moscow. OPEC, Russia and other producers meet in Vienna next week to decide whether a pact curbing output needs to be adjusted in order to rein in oil prices that topped $80 a barrel last month. Russian Energy Minister Alexander Novak said after talks with Saudi Energy Minister Khalid al-Falih in Moscow that both nations "in principle" supported the gradual exit from the deal. "We in general support this but specifics we will discuss with the ministers in a week," he told reporters, adding that one option would involve gradually hiking output by 1.5 million bpd, possibly starting from July 1.
On 6/15/2018, Reuters reported Beijing surprised oil markets with threats to levy tariffs on imports of U.S. crude oil, natural gas and other energy products on Friday, just as China has risen to the top of the list of importers of oil from the U.S. China responded to $50 billion in tariffs imposed by U.S. President Donald Trump with a similar amount of levies on a variety of U.S. goods. But China also said it would impose tariffs on U.S. energy products, which analysts considered a surprise as previous tariff threats had centered on agricultural goods and automobiles. China currently imports about 363,000 b/d of U.S. crude. It also takes in an additional 200,000 b/d of other products like propane.