Register

Peak Oil is You


Donate Bitcoins ;-) or Paypal :-)


Page added on January 28, 2018

Bookmark and Share

Asia’s energy landscape in 2018

Consumption

The dynamics of Asia’s energy landscape is changing fast as prices – from crude oil to LNG – are staging a sharp recovery. What kind of pressure Asian importers will face in 2018? Will there be demand destruction? Are we going to see a change in supply patterns?

 

The S&P Global Platts Asian oil news and analysis team has put together a series of outlook stories that delves deeper into what’s in store for the region’s oil and gas sector in 2018.

 

OIL

 

China’s product exports set to rise as Beijing eases restrictions
China’s oil product exports are expected to grow at a healthy rate in 2018, after a modest rise in 2017, as Beijing relaxes restrictions amid strong lobbying by state-owned oil companies and a forecast increase in refining capacity of around 1 million b/d this year.
Read more

 

China’s LPG demand to grow, albeit at a slower pace
China’s LPG demand is expected to continue its positive growth momentum in 2018 but the growth rate is expected to slow because of policy uncertainties that could cast a shadow over the petrochemical sector’s demand outlook, analysts and market sources said.
Read more

 

Asia naphtha set for slightly stronger year; cleaner gasoline specs eyed
Asia’s gasoline market will be supported by continued buying in the Middle East and growing demand in South Asia but projections of heavy Chinese exports may put a ceiling on the uptrend, sources said.
Read more

 

After a year of pain, India’s oil demand set to gain
After a year of faltering growth, India’s oil demand is set to stage a recovery in 2018 as New Delhi aims to boost infrastructure spending and step up efforts to inject liquidity into its banking sector, while the economy starts to adjust to a series of economic policy reforms introduced last year.
Read more

 

Australia, Iran could set condensate price trend
Australia and Iran could play a leading role in shaping new price trends in the Asia Pacific ultra-light crude market in 2018 as the Oceania producer’s new condensate stream is expected to spur intense competition among various suppliers around the region, while an expected drop in Iranian exports next year may ignite Asia’s desire to buy more arbitrage barrels.
Read more

 

Asian sweet crude market may run out of Indonesian grades
Low sulfur Indonesian crude oil could become a rare commodity in the Asian spot market next year as Southeast Asia’s biggest energy consumer is set to retrieve various domestic field operatorships from foreign upstream companies, signaling Jakarta’s desire to digest more local oil and minimize crude imports.
Read more

 

South Korea’s 2018 Iranian condensate imports likely to slide
Australia and Iran could play a leading role in shaping new price trends in the Asia Pacific ultra-light crude market in 2018 as the Oceania producer’s new condensate stream is expected to spur intense competition among various suppliers around the region, while an expected drop in Iranian exports next year may ignite Asia’s desire to buy more arbitrage barrels.
Read more

 

NATURAL GAS, LNG

 

Asia LNG faces headwinds on rising global supply, falling legacy consumption
After a winter of record high LNG prices, the Asian markets are bracing again for another year of structural oversupply, as the strength of China and emerging Asian markets seems insufficient to bridge the gap between growing global supplies and declining consumption among legacy Asian buyers.
Read more

 

South Korea’s LNG demand unlikely to rebound in 2018
South Korea’s LNG demand is unlikely to rebound in 2018 because the new government has softened its stance against the country’s heavy reliance on coal and nuclear for electric power generation.
Read more

Platts



2 Comments on "Asia’s energy landscape in 2018"

  1. Davy on Mon, 29th Jan 2018 11:27 am 

    “All of which proves one important thing – the crude oil balance is here.”???

    “Three Wild Cards That Could Hurt The Oil Rally”
    https://tinyurl.com/y7jaculk

    Wild Card #1 – U.S. Production The impact of U.S. production has always been a wild card when it comes to the price of oil. American volume has never been a part of the OPEC accord. With U.S. exports increasing to the global market, how much is produced in the States has a much more direct influence on prices.

    Wild Card #2 – The Dollar The next wild card we have to factor in is that the exchange value of the U.S. dollar is, currently at least, buttressing the price of crude. The vast majority of daily oil sales worldwide are denominated in dollars…..The softness in the greenback has been providing support for rising oil prices. This relationship seems less direct than had been the case in the recent past.

    Wild Card #3 – Short Contracts The last wild card is short contracts. Oil’s price rise has also been supported by the unraveling of short contracts – something I have addressed on several occasions in the past…..Of course, running shorts when the price is rising is a certain formula for losing a lot of money. That’s because the shorts must be covered when due. That means the short holder must move back into the market and buy the contracts “covered” by the short. If the underlying price at redemption is higher than the price paid when the short was introduced, it costs the short artist more than the short’s initial face value. Taking options on the short changes some of the dynamics but not the overall result. In the squeeze resulting, shorts will be liquidated early, resulting in a spike in the underlying crude oil prices.

    Fact is, oil’s meteoric climb over the past few weeks has been incredible. Enough so that I will be revising my 2018 oil price prediction over the next couple of days. You see, we not only blew through my original prediction, I said WTI would be trading between $59 and $61 a barrel; Brent between $63 and $65…We also exceeded my second quarter predictions that Brent would be trading between $67 and $69 a barrel.

  2. Cloggie on Mon, 29th Jan 2018 12:23 pm 

    China puts New Silk Road initiative in higher gear, encompasses Arctic:

    https://www.bloomberg.com/amp/news/articles/2018-01-28/china-infrastructure-push-reaches-arctic-further-isolating-u-s?__twitter_impression=true

    World trade, in 2018 that’s Eurasia:

    http://www.spiegel.de/wissenschaft/weltall/bild-1190012-1242778.html

    Britain to become second class EU member state for the duration of two years:

    http://www.spiegel.de/politik/ausland/brexit-europaeische-union-stellt-grossbritannien-bedingungen-fuer-uebergangsphase-a-1190407.html

    March 2019 until December 2020: all duty and rights but no say. And then bye-bye.

Leave a Reply

Your email address will not be published. Required fields are marked *