Supply-Demand: Demand Shift Flattens Balances at Start 2022

Copyright © 2023 Energy Intelligence Group All rights reserved. Unauthorized access or electronic forwarding, even for internal use, is prohibited.
2022's 'New' Normal for Oil Demand

Oil consumption is normalizing faster than initially thought, which to a large extent shows the fading impact of the pandemic — and the Omicron variant — on consumer behavior. As a result, the world can expect more oil demand overall, and especially in the first half of the year. Energy Intelligence has revised total demand in 2022 up by 240,000 barrels per day and switched how demand is distributed through the year. Crucially, the revision brings supply and demand close to balance in the first quarter. The revision shifts 800,000 b/d more to first-quarter demand and 300,000 b/d to the second. The adjustment, with robust product prices informing trends, makes the first half of the year much tighter and shows a less severe supply shortfall in the second half.

Oil Forecasts, Oil Supply, Oil Demand, Crude Oil, Oil Products, Oil Inventories, Oil Futures and Derivatives
Wanda Ad #2 (article footer)
Now that the war premium has evaporated on ongoing Russian supplies, Brent's $75/bbl doesn't look outrageous based on fundamentals.
Tue, May 23, 2023
Opec-plus' complex agreement aims to regain control of a market that has been driven recently by sentiment more than fundamentals.
Mon, Jun 5, 2023
Russia's deputy prime minister seemed to reject the notion of further supply cuts by the Opec-plus coalition.
Thu, May 25, 2023