• 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
  • 3 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 5 days Does Toyota Know Something That We Don’t?
  • 4 days World could get rid of Putin and Russia but nobody is bold enough
  • 13 hours America should go after China but it should be done in a wise way.
  • 6 days China is using Chinese Names of Cities on their Border with Russia.
  • 8 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 8 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 8 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 7 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 7 days Putin and Xi Bet on the Global South
  • 8 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 8 days United States LNG Exports Reach Third Place
  • 8 days Biden's $2 trillion Plan for Insfrastructure and Jobs
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

Jet Fuel Is Set To Be A Major Driver Of Oil Demand This Year

  • Oil demand is set to rebound in the second half of this year, with jet fuel being a primary driver.
  • Oil prices crashed last week on fears of a banking collapse and continued interest rate hikes.
  • While the recent crash has caused some analysts to alter their oil price forecasts, oil demand is still expected to rebound aggressively this year.

The oil market will tighten in the second half of this year, with jet fuel demand driving a rebound in consumption, especially in China, Amrita Sen, Director of Research at Energy Aspects, said at the FT Commodities Global Summit on Tuesday.  

Demand in China is very consumer-driven after the reopening, Sen said at the summit, adding that gasoline and jet fuel demand are set to rebound.

“That’s why I am very confident of the second-half numbers, we are going to see some really strong gasoline and jet [demand],” the energy analyst note.

“Jet is going to be the big story this year,” Sen added.   

As long as China continues to reopen, expectations of a second half with strong global oil demand remain intact, Energy Aspects’ director of research said.

The forecast came as the oil and financial markets saw one of the most tumultuous weeks so far this year with the near-collapse of Credit Suisse and the takeover by UBS as Switzerland attempted to stop the contagion to the global banking system.

Despite the massive market selloffs in recent days, Energy Aspects, as well as other forecasters, expect the oil market fundamentals to turn bullish in the second half of this year.

The oil market is set to swing from a supply overhang in the first half of 2023 to a deficit in the latter part of the year as the economic rebound in China will push global oil demand to a record high, the International Energy Agency (IEA) said last week in its monthly report.

World oil demand growth is set for a sharp acceleration over the course of this year, from an estimated increase of 710,000 barrels per day (bpd) in the first quarter to a jump of 2.6 million bpd in the fourth quarter of 2023, the IEA said in its Oil Market Report. Between Q1 2023 and Q4 2023, global oil demand is set to surge by 3.2 million bpd, taking average growth for the year to 2 million bpd.

“Rebounding air traffic and the release of pent-up Chinese demand dominate the recovery,” the IEA said.

ADVERTISEMENT

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





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