The International Energy Agency lowered its global oil demand growth estimate for next year again on weak economic growth in China, Europe’s energy crisis and a strong dollar.
The Paris-based agency now expects oil demand to grow by 1.6 million barrels per day in 2023, down from its previous estimate of 1.7 million.
The decision by Opec+, a supergroup of oil producers, to reduce production by 2 million bpd and an EU ban on Russian crude will reduce global oil supply by 1 million bpd for the remainder of this year, the IEA said in its monthly oil market report.
“The approaching EU embargoes on Russian crude and oil product imports and a ban on maritime services will add further pressure on global oil balances, and in particular, on already exceptionally tight diesel markets,” the energy body said.
“A proposed oil price cap may help alleviate tensions, yet a myriad of uncertainties and logistical challenges remain.”
Lowered forecast weighed on oil prices on Tuesday, pushing them down slightly.
Brent, the benchmark for two thirds of the world’s oil, was trading 0.83 per cent lower at $92.37 a barrel at 6.38pm UAE time on Tuesday. West Texas Intermediate, the gauge that tracks US crude, was down nearly 1 per cent at $85.09.
Meanwhile, global demand for diesel and gas oil is estimated to fall to 400,000 bpd in 2022, from 1.5 million bpd last year, before declining slightly in 2023, said the IEA, which blamed the reduction on “persistently high” prices and a slowing economy.
Diesel is the backbone of global economic activity and markets were already in deficit before Russia’s invasion of Ukraine in February.
This was due to the closure of 3.5 million bpd of refinery distillation capacity since the start of the Covid-19 pandemic, resulting in a net decline of 1 million bpd, the IEA said.
Diesel prices and its price differential to crude surged to record levels last month and are now 70 per cent and 425 per cent higher, respectively, compared with year-ago levels, while benchmark Brent prices increased 11 per cent during the same period, it said.
An additional 1.1 million bpd of crude and 1 million bpd of diesel, naphtha and fuel oil will have to be replaced once the EU embargo on Russian crude oil and product imports come into effect in December 2022 and February 2023, respectively, the IEA said.
“For crude oil, no significant buying from Russia outside China, India and Turkey has appeared despite massive discounts,” it said.
“A further rerouting of trade should help ease pressures but a shortage of tankers is a major concern.”
Global crude oil stocks fell by 14.2 million barrels in September, while OECD oil stocks dropped by 45.5 million barrels.
On Monday, Opec lowered its global oil demand forecast for this year and next, citing China’s zero-Covid policy, geopolitical uncertainty and weaker economic activity.
Global oil demand will increase by 2.5 million bpd this year, lower than Opec’s previous estimate of 2.6 million bpd, the group of oil-producing countries said in its monthly oil market report.
World oil demand next year will grow by 2.2 million bpd, down from an earlier estimate of 2.3 million bpd, Opec said.
MATCH INFO
Serie A
Juventus v Fiorentina, Saturday, 8pm (UAE)
Match is on BeIN Sports
The Birkin bag is made by Hermès.
It is named after actress and singer Jane Birkin
Noone from Hermès will go on record to say how much a new Birkin costs, how long one would have to wait to get one, and how many bags are actually made each year.
Game Changer
Director: Shankar
Stars: Ram Charan, Kiara Advani, Anjali, S J Suryah, Jayaram
Rating: 2/5
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Evacuations to France hit by controversy
- Over 500 Gazans have been evacuated to France since November 2023
- Evacuations were paused after a student already in France posted anti-Semitic content and was subsequently expelled to Qatar
- The Foreign Ministry launched a review to determine how authorities failed to detect the posts before her entry
- Artists and researchers fall under a programme called Pause that began in 2017
- It has benefited more than 700 people from 44 countries, including Syria, Turkey, Iran, and Sudan
- Since the start of the Gaza war, it has also included 45 Gazan beneficiaries
- Unlike students, they are allowed to bring their families to France
Uefa Champions League last 16 draw
Juventus v Tottenham Hotspur
Basel v Manchester City
Sevilla v Manchester United
Porto v Liverpool
Real Madrid v Paris Saint-Germain
Shakhtar Donetsk v Roma
Chelsea v Barcelona
Bayern Munich v Besiktas
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
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Dust and sand storms compared
Sand storm
- Particle size: Larger, heavier sand grains
- Visibility: Often dramatic with thick "walls" of sand
- Duration: Short-lived, typically localised
- Travel distance: Limited
- Source: Open desert areas with strong winds
Dust storm
- Particle size: Much finer, lightweight particles
- Visibility: Hazy skies but less intense
- Duration: Can linger for days
- Travel distance: Long-range, up to thousands of kilometres
- Source: Can be carried from distant regions
The Voice of Hind Rajab
Starring: Saja Kilani, Clara Khoury, Motaz Malhees
Director: Kaouther Ben Hania
Rating: 4/5
Killing of Qassem Suleimani
Teams
Punjabi Legends Owners: Inzamam-ul-Haq and Intizar-ul-Haq; Key player: Misbah-ul-Haq
Pakhtoons Owners: Habib Khan and Tajuddin Khan; Key player: Shahid Afridi
Maratha Arabians Owners: Sohail Khan, Ali Tumbi, Parvez Khan; Key player: Virender Sehwag
Bangla Tigers Owners: Shirajuddin Alam, Yasin Choudhary, Neelesh Bhatnager, Anis and Rizwan Sajan; Key player: TBC
Colombo Lions Owners: Sri Lanka Cricket; Key player: TBC
Kerala Kings Owners: Hussain Adam Ali and Shafi Ul Mulk; Key player: Eoin Morgan
Venue Sharjah Cricket Stadium
Format 10 overs per side, matches last for 90 minutes
Timeline October 25: Around 120 players to be entered into a draft, to be held in Dubai; December 21: Matches start; December 24: Finals
Specs
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Range: 400km
Power: 134bhp
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OPINIONS ON PALESTINE & ISRAEL
BMW M5 specs
Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor
Power: 727hp
Torque: 1,000Nm
Transmission: 8-speed auto
Fuel consumption: 10.6L/100km
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Price: From Dh650,000
UAE currency: the story behind the money in your pockets
The specs
Engine: 2.0-litre 4cyl turbo
Power: 261hp at 5,500rpm
Torque: 405Nm at 1,750-3,500rpm
Transmission: 9-speed auto
Fuel consumption: 6.9L/100km
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Price: From Dh117,059
Mohammed bin Zayed Majlis
if you go
