Sinopec, a top refiner, claims that China's oil demand will peak in 2027.
Sinopec, the state-owned refinery, said that China's oil demand will peak in 2027. This is due to a decline in diesel and gasoline consumption, which has slowed down global oil markets. Sinopec stated that the peak oil demand in 2027 will not exceed 800 million metric tonnes, or 16 millions barrels of crude oil per day. Sinopec predicted peak China oil demand at 800 million tonnes around 2026-2030. The energy sector in China faces new uncertainty by 2025, with the return of…
Sinopec predicts China's oil consumption will peak in 2027
Sinopec (China Petrochemical Corp.) expects China’s petroleum consumption will peak in 2027, at no more that 800 million metric tonnes or 16 million barrels a day. The state energy group released an outlook on Thursday. The forecast is more precise than the one made by the giant refining company last year when it estimated that China's peak oil production would be around 800 millions tons between 2026 to 2030. According to the Beijing outlook, the peak consumption in 2024 would have been 750 million tonnes - only the second annual decrease in the last two decades.
US LNG Rises 2% on LNG Plant Volume Data
U.S. natural gas futures climbed about 2% on Wednesday on rising flows to the nation's liquefied natural gas (LNG) export plants and expectations utilities pulled more gas out of storage than usual to heat homes and businesses during extreme cold for a second week in a row last week.Analysts, however, projected rising output and forecasts for mild weather and low heating demand through the start of the new year should keep storage withdrawals smaller than normal in coming weeks. There was currently about 4% more gas in storage than usual for this time of year.
Spot prices fall on forecast of strong wind supply
The European spot electricity prices fell on Wednesday as the wind supply is expected to increase throughout the region and demand to fall in France due to warmer temperatures. LSEG data show that the German baseload day-ahead power dropped 38.2% at 0923 GMT to 57.75 Euros per Megawatt Hour (MWh). LSEG data shows that the equivalent French contract is down by 40.5%, at 59.5 Euro/MWh. According to LSEG analyst Francisco Gaspar Machado, the outlook for Wednesday is negative due to an increased supply of wind power in Germany. The country will be a net importer in the morning.
EU solar growth slows, raising concerns for energy transition
Industry data revealed on Tuesday that the growth in solar power installations in Europe has slowed to 4% after years of double digit increases. This is raising concerns over the continent's transition to clean energy. The findings are a blow to the European Union’s plans to expand rapidly its use of renewable energies – a key pillar in the bloc’s efforts to combat climate change and to end its dependence on Russian fossil fuels. SolarPower Europe, an industry association…
French and Benelux stocks: Factors to watch
Here are some company news and stories that could impact the markets in France and Benelux or even individual stocks. TotalEnergies French oil giant Total Energies has sold half of its shares in the UK's West Burton Energy Gas Power Plant to Epuki. Vallourec French steel tube maker Vallourec has announced that it will sell a significant majority of the production facility in Dusseldorf-Rath to CTP, for 155 millions euros. The transaction should close by the end of 2024. EssilorLuxottica…
Karoon Energy, Australia's energy company, reduces its outlook for Brazil project
Karoon Energy, an Australian oil and gas company, said that it has reduced the production forecast for its Bauna Project in Brazil because of operational disruptions. After the disruptions, the company reduced its production forecast for 2024 for the Bauna Project to 7.2-7.4 millions barrels of crude oil. The previous outlook was 7.5-7.7million barrels. Karoon reported that two of the 16 chains used to lift the floating production storage offloading system (FPSO) failed. This caused the Bauna Project to be shut down in December 11.
Oil Falls as Chinese Demand Sags, Fed Ponders Rate Cut
Oil futures slipped from the highest levels in several weeks on Monday on weakness in consumer spending in China, which is the world's largest oil importer, and as investors paused buying ahead of the U.S. Federal Reserve's interest rate decision.Brent crude futures fell 39 cents to $74.10 a barrel by 1:10 p.m EST, after settling on Friday at their highest since Nov. 22.U.S. West Texas Intermediate crude shed 35 cents to $70.94 after registering its highest close since Nov.
Palme ends the week with a loss of more than 4%
Malaysian palm oils futures continued to lose money on Friday as they tracked the weakness of rival vegetable oil at Chicago and Dalian and recorded a loss for the week. On the closing, the benchmark palm oil contract on Bursa Malaysia's Derivatives exchange for February delivery fell 17 ringgit or 0.35% to 4,904 Ringgit ($1,102.77). The contract dropped 4.37% in the last week. The futures appear to be trading in a range, waiting for a new lead. A Kuala Lumpur based trader stated that he was waiting to see the Dalian exchange's behavior before deciding on a direction.
Oil prices drop on forecast surplus supply in 2025, but are set to rise by a weekly gain
Oil prices fell on Friday, as investors shifted their focus to a forecast for ample supply. They also shrugged off the expectation of higher demand in 2013 due to Chinese stimulus measures. Meanwhile, they were watching a Federal Reserve rate cut scheduled next week. Brent crude futures were down 8 cents at $73.33 per barrel as of 0125 GMT, while U.S. West Texas intermediate crude was down 7 cents at $69.95 per barrel. The International Energy Agency (IEA) expects non-OPEC+ countries to increase their supply by approximately 1.5 million barrels per daily (bpd)…
IEA projects a comfortably supplied oil market by 2025 despite a demand increase
The International Energy Agency (IEA), which is a part of the OPEC+ producer group, said that there will be enough oil on the world market in 2025. This was despite OPEC+ extending its oil supply cuts, and a slightly higher demand forecast than expected. The Agency said that its current outlook indicates a 950,000 barrels a day overhang in the next year – equal to almost 1% of the world's output – despite OPEC+ extending their output cuts until April 2025. OPEC+ is made up of the Organization of the Petroleum Exporting Countries (OPEC) and allies like Russia.
OPEC cuts oil demand forecasts for 2024 and 2025
OPEC reduced its estimates for the growth of oil demand this year and in 2019. The producer group has now revised their forecasts downward five times in a row. The weakened outlook shows the challenges facing OPEC+ which includes the Organization of Petroleum Exporting Countries (OPEC) and its allies, such as Russia. OPEC+ delayed its plan earlier this month to increase output until April 2025 due to falling prices. In a report published monthly, OPEC stated that it expected the global oil demand in 2024 to increase by 1…
French and Benelux stocks: Factors to watch
Here are some company news and stories that could impact the markets in France and Benelux or even individual stocks. ARGAN: French firm Argan published a new outlook on Tuesday and forecasts a net debt ratio of 8x to EBITDA by the end 2025. COLRUYT - The Belgian retailer Colruyt reported on Tuesday a decline in revenue of 5.4 billion euro for the first six months of its fiscal year. It also announced that its subsidiary Jims had acquired the NRG Fitness chain. GAZTRANSPORT AND TECHNIGAZ : French engineering firm GTT has received an order for two new LNG carriers from Hanwha Ocean.
EIA says that US power consumption will reach new highs by 2024 and 25.
The U.S. Energy Information Administration stated in its Tuesday Short Term Energy Outlook that the U.S. will reach record levels of power consumption in 2024-2025. EIA projects that the power demand in 2024 will reach 4,086 kilowatt hours and 4,165 kWh. This compares to 4,012 billion in 2023, and a record of 4,067 in 2022. EIA predicts that by 2024, residential customers will purchase 1,494 billion kWh of electricity, commercial customers 1,420 billion and industrial customers 1,026 billion.
EIA: US natgas production will decline in 2024 as demand reaches record levels, EIA reports
The U.S. Energy Information Administration's (EIA) Short Term Energy Outlook, released on Tuesday, predicted that U.S. Natural Gas production would decline by 2024 and demand would rise to a new record. EIA predicted that dry gas production would decline from a record 103,8 billion cubic feet per a day in 2023 down to 103.2 bcfd by 2024 due to fewer drilling activities. The producers have reduced drilling following the average monthly Henry Hub spot gas price. In March, the number of people who are employed fell to its lowest level in 32 years. Since then, it has remained low.
EIA: US Crude Imports to fall to lowest level since 1971
U.S. net crude oil imports are forecast to fall by 20% next year to 1.9 million barrels per day, their lowest since 1971, the Energy Information Administration said on Tuesday, pointing to higher U.S. production and lower refinery demand.The EIA expects the United States to produce 13.52 million bpd in 2025, up from 13.24 million bpd in 2024, it said in its December Short-Term Energy Outlook (STEO). Meanwhile refiners are set to process 16 million bpd of crude oil in 2025…
Russell: China's crude oil imports in November recover and other commodities remain strong
The Chinese economy is having a great week, as the outlook has improved amid new stimulus measures. Commodity imports have also performed well in November. The CSI300 index, which is the benchmark, rose 3.2% on the opening day, while government bonds rallied. The announcement of additional monetary stimulus in the official media boosted sentiment. However, the high imports of commodities in November also helped. Natural resources are an important indicator of China's health, as it is the largest buyer in the world.
Putin's decree: Gas prices to fall on a milder outlook
The Dutch and British wholesale prices of gas fell slightly on Friday morning, due to a more milder forecast for the weather since mid-December. Also, Russian President Vladimir Putin canceled a requirement that gas buyers convert their roubles. The benchmark contract for the Dutch TTF hub, the front-month contract, was down by 0.27 euros at 46.26 euro per megawatt (MWh) at 0919 GMT. Meanwhile the contract for February was 0.31 euros lower at 46.24 euro/MWh. LSEG data shows that although colder weather will be expected in North-West Europe next week…
What OPEC+ oil production cuts are currently in effect?
OPEC+ made further changes at its meeting on Dec. 5, delaying a planned production increase further into the next year, as it faced a weaker outlook for oil demand. Due to weak demand and increased production outside of the group, the oil producer group pushed the start of rising oil output back by three months. The full unwinding will now take place until the end 2026. Here is a short explanation of how the Organization of Petroleum Exporting Countries (OPEC+) and its allies have reduced their emissions.
What OPEC+ oil production cuts are currently in effect?
OPEC+ will likely make more changes to its oil policy at its meeting on December 5, delaying a planned production increase further into the next year, as it is facing a weaker outlook for oil demand. In June, the oil producers' group reached a complex agreement to extend production cuts deep into 2025. The agreement has been modified to allow the group to delay a planned production increase by three months to the start of next year. Here is a short explanation of how the Organization of Petroleum Exporting Countries (OPEC+) and its allies have reduced their emissions.
