In this interview given to Abdullah Al Subaiei and Sahar Al Mizari from Asharq Business with Bloomberg, Dr. Carole Nakhle, CEO of Crystol Energy, discusses the oil market trends ahead of the holidays season.
Key takeaways:
– Oil market observers typically expect oil demand to ramp up during the summer months due to increased travel and driving, thereby exerting upward pressure on prices.
– While this trend exhibits itself on an annual basis, there has been no consistent increase in oil demand ahead of summer of 2024.
– The longer-term picture looks different from the positive short-term outlook as concerns over demand growth are affected by the patchy outlook of the global economy.
– Forecasting agencies are aligned on the fact that Asia Pacific, particularly China, will drive the growth in oil demand for 2024. However, the extent to which Chinese oil demand will grow depends on the speed at which the structural problems the economy faces dissipate.
– Iran is not able to expand its global oil trade partnerships as long as it is under sanctions, which have limited the country’s export potential and have affected its production capacity.
Related Analysis
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“Asia’s energy market: The new global epicenter“, Dr Carole Nakhle, Dec 2023
“A rising China is reshaping global energy markets“, Dr Carole Nakhle, Nov 2023
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