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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
OIL
China’s oil demand this year is likely to have peaked at 16.4mbpd in Q2 according to Jianan Sun at Energy Aspects. Demand is expected to ease to 15.8mbpd in Q3 before rising back to 16.2mbpd in Q4. Demand is expected to remain above 16mbpd in 2024 to reach almost 17mbpd in Q2 2024.
- China’s demand for fuels and other oil-derived products such as plastics may have peaked for this year amid economic concerns with weak indicators across manufacturing and infrastructure sectors according to Bloomberg.
- Much of the strong imports seen this year has been stockpiled rather than turned into gasoline and diesel. Onshore stockpiles have expanded to a record 1.02 billion barrels in July according to Vortexa.
- Diesel and gasoline consumption is unlikely to reach pre-pandemic levels this year, and electric vehicles are presenting a challenge to future demand according to OilChem.
- There is not much room for China growth left in the second half according to FGE. FGE expects Chinese oil demand growth will slow to 1.1mbpd in H2 2023 compared with 1.3mbpd in H1.
- China’s oil demand is still expected to increase in the coming years before peaking in 2030 despite short term headwinds.
Source: Vortexa / Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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