![IEA’s Birol: China to Drive Oil Demand, Could Tip LNG Markets](/sites/default/files/styles/hart_news_article_image_640/public/image/2023/06/ieas-birol-china-drive-oil-demand-could-tip-lng-markets.jpg?itok=dDlRE_g8)
Global oil demand could rise more than 2 MMbbl/d in 2023 driven mainly by China, which could also upset the balance of LNG markets, IEA director Fatih Birol said during a video interview with Bloomberg.
Global oil demand will rise slightly – by more than 2 MMbbl/d – in 2023, driven primarily by China, Fatih Birol said, executive director of the International Energy Agency (IEA), during a video interview with Bloomberg on June 22.
Birol said about 60% of the demand will come from China.
“If the Chinese economy rebounds stronger than we assume, because we think it's a more sluggish growth … [and] looking at the demand-supply picture [for the] second half of this year, given the cuts some of the producing countries are going to carry out, we may see some tightness in the markets,” he told Bloomberg.
RELATED: IEA: Global Oil Demand Growth to Slow Significantly by 2028
When asked about gas prices in Europe ahead of winter, the IEA director said many governments and leaders were too “relaxed” due to the amount of gas already in storage in Europe.
He cautioned against optimism for two main reasons. “One, if the Chinese economy is strong, they will buy a lot of LNG from the markets,” Birol said. “This year is different, as the amount of new additional LNG coming to markets is one of the lowest in history and there will not be enough LNG for Europe left to buy.”
Birol also said a very harsh winter could also be a big problem for Europe in terms of prices.
“Just looking at the current gas storage levels, we may see the gas prices, which are lower now, to come up higher,” Birol said.
Recommended Reading
Solaris Stock Jumps 40% On $200MM Acquisition of Distributed Power Provider
2024-07-11 - With the acquisition of distributed power provider Mobile Energy Rentals, oilfield services player Solaris sees opportunity to grow in industries outside of the oil patch—data centers, in particular.
Halliburton Sees NAM Activity Rebound in ‘25 After M&A Dust Settles
2024-07-19 - Halliburton said a softer North American market was affected by E&Ps integrating assets from recent M&A as the company continues to see international markets boosting the company’s bottom line.
Offshore, Middle East Buoys SLB’s 2Q as US Land Revenue Falls
2024-07-19 - Driven by a strong offshore market and bolstered by strategic acquisitions and digital innovation, SLB saw a robust second quarter offset by lower drilling revenue in the U.S.
Liberty Energy Warns of ‘Softer’ E&P Activity to Finish 2024
2024-07-18 - Service company Liberty Energy Inc. upped its EBITDA 12% quarter over quarter but sees signs of slowing drilling activity and completions in the second half of the year.
Upstream, Midstream Dividends Declared in the Week of July 8, 2024
2024-07-11 - Here is a selection of upstream and midstream dividends declared in the week of July 8.