The most recent WTI drop of 2.9% is the largest in a month. Supply versus demand continues to be a curious topic that is the main driver of the current crude oil situation. Oversupply of crude oil in 2020 continues as just in the past few days in the North Sea there are a combined 12 cargoes that have yet to find a buyer suggesting slow demand is taking place in the region.
demand
How Close are We to Peak Oil Demand?
By: Jon Babyak / Posted on: June 29, 2020
The COVID-19 pandemic has been particularly tough on the oil industry, and it appears as though the impacts will be felt well beyond the immediate future. According to BloombergNEF, peak fuel demand will come sooner than previously predicted, with gasoline demand peaking in 2030 and on road diesel demand peaking shortly after in 2033. While there are other factors in play, COVID-19 certainly appears to be expediting the process.
Will the Oil Demand Continue?
By: Daniel Guttman / Posted on: November 14, 2019
According to a global energy industry forecast, oil growth will continue to soar until the 2030’s and climate-damaging emissions will keep climbing until at least 2040. The World Energy Outlook is not only closely watched by the oil industry but also the governments due to its relevance to climate policy. The International Energy Agency said that almost 20% of the growth in last year’s global energy use was “due to hotter summers pushing up demand for cooling and cold snaps leading to higher heating needs.” The Internation Energy Agency (IEA) forecast global oil demand to be 106.4 million barrels per day by 2040 (up from 96.9 million last year).
Russia Upping the Ante
By: Matt Karol / Posted on: October 25, 2019
After the recent attacks on the oil processing facilities in Saudi Arabia, demand for spot crude oil has risen. Russian oil demand has been very strong in the Asian market as a result of it. With recent U.S. sanctions on Chinese cargo ships, freight rates have spiked on tankers in the Pacific. This has prompted the Asian market to bid on freight that ship shorter distances, making the option of Russian crude oil more desirable.
Sand Demand
By: Matt Reese / Posted on: July 24, 2018
There is a new land grab in the Permian Basin that may ease the bottlenecks of oil producers in the west Texas region. Oil Producers pump frac sand and other materials into wells to break up shale rock in order to produce oil. These wells are getting longer and wider which increases the amount of sand used. The need for frac sand is increasing as U.S. rig counts hover above 1,000 nationwide.
Guttman Energy Daily Market Update Disclaimer – The information contained in this market update is derived from sources believed to be reliable; however this update could include technical inaccuracies or typographical errors and Guttman Energy does not guarantee the accuracy, completeness or reliability of this update. FURTHERMORE, THIS UPDATE IS PROVIDED "AS IS," WHERE IS, WITH ALL FAULTS AND WITHOUT ANY WARRANTY OR CONDITION OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY. GUTTMAN ENERGY ALSO SPECIFICALLY DISCLAIMS ALL EXPRESS AND IMPLIED WARRANTIES. YOU USE THIS UPDATE AT YOUR SOLE RISK. This update and any view or comment expressed herein are provided for informational purposes only and should not be interpreted in any way as recommendation or inducement to buy or sell products, commodity futures or options contracts.