The re-routing of Russia’s oil shipments away from Europe and into Asia and the re-routing of oil tankers via the Cape of Good Hope away from the Red Sea route took months, but there isn’t any oil shortage in any part of the world now. Concerns about demand have been weighing heavily on the market in recent months, capping any gains stemming from geopolitical flare-ups and limiting the upside from supply disruptions such as production shut-ins due to hurricanes in the U.S. Gulf of Mexico or to the political strife between rival governments in Libya. Chinese demand growth for 2024 was cut to 653,000 bpd from 700,000 bpd, and OPEC noted that “headwinds in the real estate sector and the increasing penetration of LNG trucks and electric vehicles are likely to weigh on diesel and gasoline demand going forward.”
Author: Tsvetana Paraskova
Published at: 2024-09-11 22:00:00
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