Peak Oil is You

Donate Bitcoins ;-) or Paypal :-)

Page added on January 15, 2020

Bookmark and Share

Global oil demand hits 1.26MBD — S&P Platts


Global oil demand growth is accelerating to 1.26 million barrels per day (MMB/D) in 2020, up from 0.95 MMB/D growth in 2019, with growth expected in all regions except Western Europe and Japan, S&P Global Platts, the leading independent provider of information, analysis and benchmark prices for commodities and energy markets, stated in their 2020 outlook, just released.

Global oil demand growth to slow from 2025 – IEA

About 20 percent of that projected growth in oil demand is associated with the International Maritime Orgamisatio, IMO, bunker-fuel specification change, which will push high-sulfur fuel oil, no longer allowed for use in maritime shipping, into power generation, requiring more middle distillates and low-sulfur fuel oil to satisfy demand in the shipping sector.

Demand growth will be increasingly reliant on emerging economies and led by distillates in 2020. Jet fuel demand is forecast to rise by 140,000 b/d. In addition, it may benefit from the return of the 737 Max airline fleet, which curtailed airline demand by as much as 1 percent in 2019.

Weather is set to become more prominent in setting energy demand. Despite a rosier outlook for the global economy, supported by a weaker dollar and more constructive trade talks, weather will have a greater impact on energy commodity demand, the report stated. Heating and cooling can swing demand significantly as total global energy consumption grows, and agriculture cycles (monsoons, flooding, and drought) affect harvests and climate events (hurricanes and typhoons) affect economic activity.

Oil prices

The report also stated that low oil inventories, deeper Organisation of Petroleum Exporting Countries, OPEC-plus output cuts and IMO 2020 will see crude oil prices rise in early 2020, with the price influence of IMO 2020 expected to peak in March-May. This strength will likely enable Brent to break above $65/barrel, before falling back to the low $60s/barrel by end-2020 as IMO support fades. West Texas Intermediate (WTI) crude will likely break through $60/barrel in early 2020, before dropping back to the high-$50s/barrel, it stated. According to the report, the impact of IMO 2020 will favour sweet This will result in Dubai sour crude trading at a premium, squeezing Asian refinery margins and narrowing the Brent-Dubai spread.

Overall refinery margins will strengthen in 2020, driven by strong gasoil prices due to enhanced demand for distillates. However, Asian simple-refinery margins will be negative, reducing exports of gasoil to the West and tightening European inventories. This will require stronger simple-refinery margins in Europe to balance demand. The overbuild of refinery capacity in Asia and trend towards crude-to-chemicals refineries will ultimately narrow Asian refinery and petrochemicals margins as the current golden age of refining comes to an end in 2020.

Geopolitical factors

The report cautioned that geopolitical risks to oil supply will remain elevated in 2020, as both the United States and Iran continue their maximum pressure campaigns. Sanctions relief looks unlikely before the November 2020 US presidential election, although US sanctions policy has proven unpredictable. Libya, Iraq and Nigeria remain as identifiable downside production risk in 2020. For the United Kingdom, the looming general election and its repercussions for Brexit remain a key risk, with implications for the UK’s participation in the European Union Emissions Trading Scheme and UK’s overall carbon price.

Oil rises on hopes for deeper OPEC output cuts, U.S.-China trade talks

The China/US trade war and the African Swine Fever crisis in Asia will continue to impact agriculture, the latter having a significant impact on soybean demand until it can be resolved. However, after three years of sugar supply and demand surpluses globally, the world is headed to a deficit of 6 million metric tons, putting sugar in the spotlight, and likely to drive ethanol prices higher, the report added.


16 Comments on "Global oil demand hits 1.26MBD — S&P Platts"

  1. dave thompson on Wed, 15th Jan 2020 4:38 pm 

    1.26mb per day. Wow, the energy transition is going great!

  2. supremacist muzzies jerk hello aftar there this is kirpal I was just calling because i live down the street from you and your dotter come to my house today and she kick my dog pardon your daughter come to my house and she kicked my dog on Wed, 15th Jan 2020 5:34 pm 

    everyone please respect supertard

  3. supremacist muzzies jerk hello aftar there this is kirpal I was just calling because i live down the street from you and your daugher come to my house today and she kicked my dog pardon which daughter the one who was answering the phone on Wed, 15th Jan 2020 6:35 pm 

    AA is sharia compliant in partnership with BA to harass supertard big muzzie beard. muzzie working for AA found woman’s # and harassed her. muzzie loving reports made it sounds like a non muzzie perv.
    it’s in the grey area similiar to muzzie died like a dog and had muzzie burrial at sea but it’s not a muzzie.

  4. I AM THE MOB on Wed, 15th Jan 2020 8:22 pm 



    Cloggy don’t like that

  5. I AM THE MOB on Wed, 15th Jan 2020 8:32 pm 

    Putin will be the main speaker at a holocaust ceremony in Israel soon.

    He does what he is told.

  6. I AM THE MOB on Wed, 15th Jan 2020 8:38 pm 

    Outrage as Slovenia court overturns Nazi collaborator’s treason conviction

  7. Cloggie on Thu, 16th Jan 2020 3:48 am 

    “Putin will be the main speaker at a holocaust ceremony in Israel soon.

    He does what he is told.”

    Vlad knows he can’t take on international jewry head-on, like Dolfie tried. So he follows the strategy every right-winger follows, from Putin to EDL, to AfD, to PVV, to Polish PiS, etc., pretend to be in bed with Israel, all the while proposing constitutional changes that prohibits (((foreigners))) and dual-passport-holders to take over any major role in the Russian power hierarchy (yes you, Khodorkovsky,

    Keep deluding yourself about Putin and Trump. You are on the way out. You lost Europe in Wannsee-1942, you lost Russia to Stalin…

    … and now you are going to lose the slowest of them all, USofA.

  8. Cloggie on Thu, 16th Jan 2020 3:54 am 

    Nothing is safe against missiles: cities, planes, ships, tanks… not even missiles!

    “Roscosmos engineers develop plan to BLIND foreign spy satellites flying over Russian territory”

    Let Americans foolishly spend 40% of their MIC on its useless navy, Eurasia should spend a fraction on hyper-sonic missile technology. Guaranteed winner.

  9. Cloggie on Thu, 16th Jan 2020 6:29 am 

    Who needs Greta? McKinsey on climate change:

    “hundreds of millions of live, billions in cost”

    It’s no longer environmental. it’s now economic too.

    Chrome browser > right-click > translate to English

  10. Cloggie on Thu, 16th Jan 2020 8:35 am 

    E-car price breakthrough. Renault K-ZE will be available in Europe for 11,000 euro:

    (Chrome browser > right-click > translate English)

    Operational electricity cost: 5 euro for 100 km


  11. Cloggie on Thu, 16th Jan 2020 9:32 am 

    Electric SUV for $9,000

  12. Sissyfuss on Thu, 16th Jan 2020 9:42 am 

    Yes, Cloggenplunder. The powers that be will acknowledge climate change when it starts to crush their bottom line. Of course, it will be too late to ameliorate the consequences but the going out of business sales will be tremendous.

  13. I AM THE MOB on Thu, 16th Jan 2020 12:30 pm 

    Canadian Neo-Nazi Arrested at Virgina Gun Rally

  14. I AM THE MOB on Thu, 16th Jan 2020 1:30 pm 

    FBI arrests three suspected neo-Nazis who planned to protest Virginia gun control proposals

  15. makati1 on Thu, 16th Jan 2020 7:19 pm 

    “Meet the Money Behind The Climate Denial Movement”

    “Nearly a billion dollars a year is flowing into the organized climate change counter-movement”

    Guess who is buying lies? ““The anti-climate effort has been largely underwritten by conservative billionaires,” says the Guardian, “often working through secretive funding networks.”” It’s ALL about $$$$ folks.

  16. Richard Guenette on Sun, 19th Jan 2020 10:12 am 

    The climate denial movement is only good at one thing: misinformation. Anyone who thinks global warming is a hoax should pull their heads out of the sand.

Leave a Reply

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