• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 1 day Solving The Space Problem For America’s Solar Industry
  • 16 hours How Far Have We Really Gotten With Alternative Energy
  • 2 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 2 days If hydrogen is the answer, you're asking the wrong question
  • 6 days Investment in renewables tanking
  • 10 days "Mexico Plans to Become an Export Hub With US-Drilled Natural Gas" - Bloomberg - (See image)
Editorial Dept

Editorial Dept

More Info

Premium Content

High Gasoline Prices Are Starting To Hurt Demand

1. OPEC Exports Underwhelm Despite High Prices

Source: Kpler.

- The Russia-Ukraine war has taken OPEC heavyweights out of the public limelight, somewhat concealing the fact that the 400,000 b/d monthly increments of OPEC+ routinely end up underproduced.

- Saudi Arabia is the only major OPEC producer to pull off a tangible export hike over the past months – in February outflows jumped to 7.15 million b/d – however with Iraq and Kuwait faltering, the net effect has been lower than assumed.

- Hence, OPEC producers could enjoy high prices with a limited effort to boost production, not risking their spare production capacity – arguably the reason why OPEC told the EU not to ban Russian oil from the markets.

- Iraq is a peculiar case in point, with its exports stagnating for four months already at 3.2 million b/d and production set to decline this month, coming on the back of a previous month-on-month drop in February.

2. COVID-19 Reappearance Puts Chinese Rebound into Question

- China’s daily COVID-19 count reached almost 5,000 cases on Friday as the rapid spread of the Omicron variant has triggered movement restrictions in cities across 20 provinces.

- Most of the cases have been reported in Shanghai, Shandong, and Guangdong, accounting for 27% of China’s oil consumption last year, meaning China should see weaker demand than expected in 2022.

- S&P Platts expects movement restrictions…

Leave a comment

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