• 3 minutes 2nd Annual Great Oil Price Prediction Challenge of 2019
  • 6 minutes "Leaked" request by some Democrats that they were asking Nancy to coordinate censure instead of impeachment.
  • 11 minutes Trump's China Strategy: Death By a Thousand Paper Cuts
  • 14 minutes Democrats through impeachment process helped Trump go out of China deal conundrum. Now Trump can safely postpone deal till after November 2020 elections
  • 1 hour Shale Oil Fiasco
  • 3 hours Everything you think you know about economics is WRONG!
  • 5 hours Judiciary impeachment: Congressman says Sean Misko, Abigail Grace and unnamed 3rd (Ciaramella) need to testify.
  • 7 hours READ: New Record Conoco Eagleford Vintage 5 wells, their 5th generation Test Wells . . Shale going bust . . . LAUGHABLE
  • 2 hours Quotes from the Widowmaker
  • 6 hours Offshore is changing
  • 2 days Aramco to Drop $133B on Drilling over Decade
  • 19 hours You long it you short it it is Here for a long time since Trump signed it
  • 3 hours Tesla Launches Faster Third Generation Supercharger
  • 1 day Global Debt Worries. How Will This End?
  • 22 hours Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 1 day IEA predicts oil demand will grow annually at 1 million barrels a day for the next 5 years
Alt Text

Why Oil Prices Just Jumped

Oil prices recovered somewhat on…

Alt Text

What’s Behind The Bounce In Oil Prices?

Oil prices saw some significant…

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

Robust Demand Could Send Oil Prices Above $60

Healthy demand growth for fuel not only in emerging economies led by China and India, but also in Europe, is helping global inventories to draw down faster now, keeping the oil market on the right track towards rebalancing, according to industry executives who spoke at a conference on Tuesday.  

“We see the market over the next six months going well above $60 for a simple reason ... surprisingly good demand,” Adi Imsirovic, Head of Oil Trading at Gazprom Marketing and Trading, said at the S&P Global Platts APPEC conference in Singapore, as quoted by Reuters.

Global demand growth is “coming somewhere close to 1.6 to 1.7 million barrels per day and is driven by distillates,” BP’s Regional CEO for Supply and Trading for the Eastern Hemisphere, Janet Kong, said at the conference.

Diesel demand surged after Hurricane Harvey knocked offline more than 20 percent of U.S. refinery capacity at the peak of shutdowns, but demand was strong even before the storm, according to executives and analysts.

“What Harvey did is accelerate a process that was already underway,” Reuters quoted Robert Campbell, head of oil products analysis at Energy Aspects, as saying.

According to Mike Muller, Vice President of Crude Trading & Supply at Shell Trading, the soaring diesel fuel demand and the buying of crude oil to fill strategic reserves have been the key drivers of this year’s higher oil demand growth.

Earlier this month, the International Energy Agency (IEA) revised upwards its forecast for oil demand growth this year to 1.6 million bpd from the previous estimate for 1.5 million bpd growth. Related: Baghdad Asks World To Stop Buying Kurdish Oil

The expected strong demand growth, coupled with OPEC’s production cuts, is making oil analysts and traders at the Singapore conference more bullish this year than at the same event last year, according to Bloomberg. But experts warn that OPEC needs to extend the cuts beyond March 2018 in order to continue depleting crude oil stockpiles.

The outlook for the rest of this year looks bullish, but the market will be put to the real test in March 2018, when demand will be seasonally lower. Oil prices are unlikely to keep a sustainable level above US$60 because U.S. shale supply would rapidly increase, effectively capping prices, oil traders tell 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

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play