• 3 minutes Will Iron-Air batteries REALLY change things?
  • 7 minutes Natural gas mobility for heavy duty trucks
  • 11 minutes NordStream2
  • 55 mins U.S. Presidential Elections Status - Electoral Votes
  • 2 mins Evergrande is going Belly Up.
  • 3 hours Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 13 hours Is China Rising or Falling? Has it Enraged the World and Lost its Way? How is their Economy Doing?
  • 2 days Poland Expands LNG Powered Trucking and Fueling Stations
  • 2 days World’s Biggest Battery In California Overheats, Shuts Down
  • 20 hours The unexpected loss of output from wind turbines compels UK to turn to an alternative; It's not what you think!
  • 7 hours Ten Years of Plunging Solar Prices
  • 11 hours Extraction of gasoline from crude oil.
  • 3 days The coming Cyber Attack
  • 3 days Is the Republican Party going to perpetuate lies about the 2020 election and attempt to whitewash what happened on January 6th?
  • 3 days Ozone layer destruction driving global warming
  • 3 days 'Get A Loan,' Commerce Chief Tells Unpaid Federal Workers
IEA Sees Robust Oil Demand In October

IEA Sees Robust Oil Demand In October

After three consecutive months of…

Argentina Attempts To Revive Its Oil Boom

Argentina Attempts To Revive Its Oil Boom

Argentina’s government has unveiled a…

Will Oil’s Upward Trend Hold?

Will Oil’s Upward Trend Hold?

Crude prices are stuck in…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Asia’s Physical Oil Market Strengthens In Sign Of Rising Demand

China and Japan have recently intensified purchases of crude oil on the spot market, driving spot premiums for some grades to their highest in several months and signaling that Asia’s physical demand for crude is rising despite the crisis in India, where fuel consumption is slumping.

The premiums for cargoes of some of Asia’s favorite grades such as ESPO of Russia and Al-Shaheen of Qatar have jumped in recent days to their highest in months, traders told Bloomberg on Wednesday.

Rising premiums, as well as deepening backwardation of the Dubai futures structure, are pointing to continued recovery in oil demand in the most important oil-importing region. Backwardation is the state of the market signaling tighter supplies with prompt prices higher than those further out in time.

The bullish signals of demand from China and Japan add to the signs that Europe’s demand has also started to recover as most of the largest economies are re-opening.

In the UK, for example, fuel sales surged earlier this month to their highest level since the first lockdown in March last year, according to government data cited by Bloomberg.

In Asia, India’s demand has unsurprisingly dropped in the past weeks, with gasoline sales estimated down to a one-year low and diesel consumption dropping to the lowest in seven months in the first two weeks of May.

But refiners in China and Japan have been raising crude oil purchases from the Middle East and Russia.

According to Bloomberg, Rongsheng Petrochemical Co of China bought as much as 12 million barrels of oil from Middle Eastern producers Iraq, Oman, and Abu Dhabi. This was the biggest purchase in seven months.

Japan’s refiners, for their part, have bought at least five oil cargoes of the Al-Shaheen grade from Qatar at the biggest premium this year, according to data compiled by Bloomberg.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:

Download The Free Oilprice App Today

Back to homepage

Leave a comment
  • Mamdouh Salameh on May 20 2021 said:
    The Asia-Pacific region is the world’s biggest market for oil and energy. China, the world’s largest importer of crude oil, is driving both the global oil market and the Asia-Pacific market.

    With the return of the global economy to a semblance of normalcy, one would expect the global demand and prices to surge to $70-$80 a barrel by the third quarter of this year with global oil demand returning to pre-pandemic level of 101.0 million barrels a day (mbd) by the middle of the year.

    Dr Mamdouh G Salameh
    International Oil Economist
    Visiting Professor of Energy Economics at ESCP Europe Business School, London

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News