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
Vantage Drilling Names Williams Thomson as New COO
2024-12-31 - Thomson is currently Vantage’s chief commercial officer and CTO and has served the company since 2008.
Baker Hughes Wins Contracts for Woodside’s Louisiana LNG Project
2024-12-30 - Bechtel has ordered gas technology equipment from Baker Hughes for the first phase of Woodside Energy Group’s Louisiana LNG development.
Berry Closes Debt Refinancing to Uphold Growth Commitments
2024-12-26 - Berry Corp. closed a debt refinancing agreement to continue its corporate strategy of promoting scale and diversification.
Venture Global LNG Files Paperwork for IPO
2024-12-20 - Venture Global LNG filed initial paperwork for an IPO on Dec. 20, about a week after the company’s Plaquemines LNG facility started production.
Dividends Declared Week of Dec. 16
2024-12-20 - As fourth-quarter 2024 nears its end, here is a compilation of dividends declared from select upstream, midstream and service and supply companies.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.