Friday February 2, 2018
In the latest edition of the Numbers Report, we’ll take a look at some of the most interesting figures put out this week in the energy sector. Each week we’ll dig into some data and provide a bit of explanation on what drives the numbers.
Let’s take a look.
1. Oil demand is soaring
- Oil demand is growing quickly, particularly in non-OECD countries. Over the past five years, non-OECD oil demand has grown nearly 5 times as fast as that of the OECD, according to Bloomberg Gadfly. The non-OECD added 6.4 mb/d of new demand while the OECD only added 1.3 mb/d.
- Goldman Sachs just hiked its Brent six-month forecast to $82.50, in part because demand is growing at a blistering rate.
- The bank said oil demand expanded by 1.73 mb/d in 2017. But more importantly, it predicts demand will grow by 1.86 mb/d this year. That is starkly different from the 1.3 mb/d forecast from the IEA.
- That growth is the result of a broad economic expansion that is really driven by emerging markets, the bank says.
- Moreover, Goldman Sachs says that the oil market has probably already reached the five-year average inventory level, which bolsters the case for higher oil prices ahead.
2. Some shale companies more hedged than others
(Click to enlarge)
- Rystad Energy estimates that of the amount of oil that is locked into hedges for 2018, about 42 percent of it has a ceiling price at $52 per barrel.…