1. IEA Angers Oil Market With 2029 Demand Peak Call
- This week has seen a fierce standoff between OPEC and the IEA, with the latter predicting a peak to oil demand in 2029 at 105.6 million b/d, following which consumption would decline amidst higher penetration of EVs and improved fuel efficiency.
- From a total spare production capacity of 6.7 million b/d this year, the IEA sees the supply surplus ballooning to 8.2 million b/d, albeit 45% of this increase would come from natural gas liquids, not oil.
- OPEC has countered by stating it doesn’t even see a peak in crude oil demand in its long-term forecasts and expects global consumption to keep on growing to 116 million b/d by 2045, calling the IEA’s outlook calls dangerous for consumers.
- The IEA has previously called for all oil and gas investment to stop in order to comply with its stated target of reaching net zero carbon emissions by 2050.
2. China Pared Fuel Oil Buying As Costs Balloon
- Increasingly costly refinery feedstocks have prompted Asian refineries to lower their purchases of fuel oil, often used as a secondary refining feedstock in China’s independent refineries.
- As fuel oil cracks neared parity readings with Dubai, Chinese teapots cut their fuel oil imports by 45% month-over-month to 1.1 million tonnes, following an all-time high 2 million tonnes in April.
- According to Platts, prices for Russian M100 fuel oil for July arrival were heard equal…
