Daily Oil Fundamentals

Solid US Gasoline Demand Countered by China

15 Nov 2024

Solid US Gasoline Demand Countered by China

It is almost an eternal truth that the price of risk assets falls quicker and harder than it climbs. This mantra was clearly evident over the last few days when front Brent dropped $4.5/bbl in 3 sessions between last Thursday and this Monday and have not been able to reclaim even half of these losses in the following three days. The bounce from Wednesday’s lows has been tepid, and yesterday’s ascent was unconvincing.

Daily Oil Fundamentals

Forecasts Remain Tolerable but Not So the US Dollar

14 Nov 2024

Forecasts Remain Tolerable but Not So the US Dollar

We await the IEA report today, but thus far the EIA Short Term Energy Outlook (STEO) have shown accord in how China's oil demand continues to shrink. Indeed, the EIA now forecasts India to be the major source of oil demand in 2024 and 2025, accounting for 25% of total oil consumption growth globally. Next year might be a year of India, instead of China watching.

Daily Oil Fundamentals

OPEC Trimming of Forecasts Is No Great Surprise

13 Nov 2024

OPEC Trimming of Forecasts Is No Great Surprise

The oil market remains a bystander in the Trump-phoria that sweeps across investment markets elsewhere. Therefore, yesterday, the OPEC Monthly Oil Market Report was very much awaited, but its delivery held few surprises. The cartel downgraded its oil demand growth for 2024 from 1.93mbpd to 1.82mbpd and in a similar quantity, its 2025 forecast from 1.64mbpd to 1.54mbpd.