S&P expects 70 per cent of global oil demand growth to come from Asia

US oil futures were up 3.9 per cent at US$65.13 a barrel at 8.13am in Singapore. PHOTO: AFP. Sketched by the Pan Pacific Agency.

NEW YORK, May 22, 2023, CNBC. S&P expects 70% of global oil demand growth this year to stem from Asia, with a lot of that being driven by jet fuel as travel returns to pre-Covid levels, CNBC reported.

“Asia is the engine of that oil market and global economy. We’re expecting about 70% of global oil demand growth this year coming from Asia,” said S&P’s Managing Editor of OPEC, Herman Wang.

S&P is forecasting a 2.1 million barrels per day of demand growth for 2023, relatively more conservative than OPEC’s estimate of 2.3 million barrels per day.

Wang said that the upcoming June OPEC meeting will most likely center around Russian oil production numbers, and that there will “not [be] a lot of appetite for further cuts.”

Global benchmark Brent futures traded 1.12% lower at $74.73 a barrel Monday, while the U.S. West Texas Intermediate futures was down 1.19% at $70.7 per barrel.

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