Global Oil Demand going up - Jan 18
Posted: Wed Jan 18, 2023 9:49 am
I will open today's luncheon with comments about this.
From MarketWatch
Oil rises to 6-week high amid continued optimism over China reopening
2023-01-18 12:40:20.599 GMT
By William Watts
Oil futures rose Wednesday to their highest levels since
early December as traders remained upbeat about the reopening of China's
economy after Covid restrictions were lifted with the International Energy
Agency boosting its forecast for crude demand growth in 2023.
Market drivers
The Paris-based IEA lifted its forecast for oil-demand growth this year by
nearly 200,000 barrels a day to 1.9 million barrels a day. The extra demand
means that the IEA now expects total oil demand this year to average 101.7
million barrels a day, well above pre-pandemic levels and a record amount.
China's strict COVID restrictions were seen keeping a lid on crude demand
until December, but the country's rapid lifting of curbs on business and
consumer activity has now spurred optimism over the demand outlook, helping to
lift crude demand in the new year.
The IEA raised its forecast for Chinese demand by 100,000 barrels a day to
15.9 million barrels a day.
Output data from China showed that oil refiners processed around 14.17 million
barrels a day (mb/d) of crude in December, down from 14.69 mbd in November but
up 2% year over year, noted Warren Patterson and Ewa Manthey, strategists at
ING, in a note. Full-year 2022 numbers averaged 13.57 mb/d, down almost 4%
year over year.
"Weaker domestic demand and low refined product export quotas would have
weighed on refinery runs through 2022. Activity should recover this year,
given the expected recovery in oil demand following China's reopening, along
with the government releasing larger volumes of refined product export quotas
more recently," they wrote.
-William Watts
(END) Dow Jones Newswires
From MarketWatch
Oil rises to 6-week high amid continued optimism over China reopening
2023-01-18 12:40:20.599 GMT
By William Watts
Oil futures rose Wednesday to their highest levels since
early December as traders remained upbeat about the reopening of China's
economy after Covid restrictions were lifted with the International Energy
Agency boosting its forecast for crude demand growth in 2023.
Market drivers
The Paris-based IEA lifted its forecast for oil-demand growth this year by
nearly 200,000 barrels a day to 1.9 million barrels a day. The extra demand
means that the IEA now expects total oil demand this year to average 101.7
million barrels a day, well above pre-pandemic levels and a record amount.
China's strict COVID restrictions were seen keeping a lid on crude demand
until December, but the country's rapid lifting of curbs on business and
consumer activity has now spurred optimism over the demand outlook, helping to
lift crude demand in the new year.
The IEA raised its forecast for Chinese demand by 100,000 barrels a day to
15.9 million barrels a day.
Output data from China showed that oil refiners processed around 14.17 million
barrels a day (mb/d) of crude in December, down from 14.69 mbd in November but
up 2% year over year, noted Warren Patterson and Ewa Manthey, strategists at
ING, in a note. Full-year 2022 numbers averaged 13.57 mb/d, down almost 4%
year over year.
"Weaker domestic demand and low refined product export quotas would have
weighed on refinery runs through 2022. Activity should recover this year,
given the expected recovery in oil demand following China's reopening, along
with the government releasing larger volumes of refined product export quotas
more recently," they wrote.
-William Watts
(END) Dow Jones Newswires