Dubai PR Network, Online Press Release from Dubai and Middle East
 
(Energy and Industry)
Filter PR by
  
BofA - Global Energy Weekly: Oil's EMerging Divergence
 

EMs are poised to lag the DM oil demand surge 


Even as Covid-19 cases hit record levels this week, oil prices have moved higher on growing vaccination numbers in Developed Markets. Recent data points to the high effectiveness of vaccines at preventing infections and fatalities. So both U.S. and European governments are pushing ahead with big reopening plans. Linked to this immunization push, driving mobility and service PMI (purchasing managers' index) trends between developed and emerging markets have visibly started to diverge, ringing alarm bells across the oil market. Emerging economies come in all shapes and sizes. After a strong rebound in 2H20, manufacturing PMIs have started to roll down in Brazil and India, where Covid-19 is once again slowing economic activity. 


A robust Chinese recovery stands alone among EMs 


Still, some metrics are helping support oil prices. For starters, EM crude oil inventories outside China have normalized and are now sitting 1.2mn below average 2019 levels. And China is notorious for precautionary oil stocking, suggesting that barrels amassed during 2020 will not come out of storage any time soon. With domestic demand for fuels benefitting from increased car sales, a recovery in local travel, and a strong industrial backdrop, Chinese crude imports averaged 11.7mn b/d in February and March, a seasonal record. True, India is unfortunately in a very different position. Mobility trends are pointing to a major deceleration in economic activity ahead as the country is immersed in a dramatic second wave. And so is Brazil.


EM vaccine delays could slow the oil demand recovery


When will EM oil demand fully recover then? It depends. China, the world's largest oil importer, has seen oil demand roaring back. India is poised for a major oil demand slowdown over the next 3 months, even if the recent vaccine export ban accelerates the path to herd immunity. Brazil is probably still months away from getting back into solid economic footing. And immunizations across a broad range of emerging economies will likely lag the US and Europe by at least a year. What's the silver lining? The seasonal step level demand change in 3Q this year will be compounded by the reopening of the US and Europe. Plus increased car sales and reduced use of public transport could extend the cyclical oil demand recovery. Brent still has upside beyond $70/bbl heading into the July 4th summer driving peak, although a US-Iran deal remains a downside risk.

 


Posted by : DubaiPRNetwork.com Editorial Team
Viewed 7921 times
PR Category : Energy and Industry
Posted on : Tuesday, May 4, 2021  2:33:00 PM UAE local time (GMT+4)
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of DubaiPRNetwork.com.
Previous Story : Daikin launches two new series of air purifiers for the Midd...
Next Story : Siemens Energy to Rebuild West Mosul's Super-Grid Station to...
Email this article Print this article

Share this article with your friends and followers
NewsVine
Back to Section Home

Related Stories



 
 
Most Viewed Press Release posted in the last 7 days
Take A Deep Dive Into Bernhard H. Mayer's Latest Watch, the Wave Breaker [9303-Views]
Age in Reverse with Dr. Belmeur's New Total Youth Biome Range [6199-Views]
Savour Flavourful Mediterranean Cuisine and Celebrate Great Food at Majlis Al Sultan This ... [5309-Views]
Etihad Rail Signs Memorandums of Understanding at Innotrans 2022 with Leading Internationa... [5047-Views]
Gold Price Hits a Two Year Low: Best Time to Invest in Gold [5002-Views]
Ladies Collection [4694-Views]
Codebreakers Wanted! Unlock The Bremont Vault [4522-Views]
Your Signature Style with Pandora. [4518-Views]
The Largest Showroom of Malabar Gold & Diamonds in Abu Dhabi to Open in Mazyad Mall [4485-Views]
Kalyan Silks' 6th Showroom in UAE Inaugurated in Sharjah by Prithviraj Sukumaran [4092-Views]
Mexico and Costa Rica Explore Cooperation in Culture and Knowledge Sectors With Sharjah [3973-Views]
Startup Sharjah Hackathon In Khorfakkan Equips 150 Youth With Business-building Skills [3809-Views]
Start-Up of Unit 3 of Barakah Nuclear Energy Plant Accelerates Achievement of UAE Net Zero... [3612-Views]
Team Abu Dhabi Star Tops Qualifying With Dramatic Late Surge [3612-Views]
Prepare Your Closet for Winter with Springfield's New Fall/Winter 2022 Collection [3579-Views]
Abu Dhabi Festival Presents the First ever ‘inshad' Concert of its Kind at the Great Pyram... [3464-Views]
Samsung Electronics Announces New Environmental Strategy [3464-Views]
Rise Every Day: Mashreq redefines its role with historic new identity and customer proposi... [3411-Views]
Opening Soon: Union Coop Announces the Completion of Nad Al Hammar Mall [3370-Views]
Dubai Muscle Show Champions Female Bodybuilding Talent By Offering a Staggering AED 100,00... [3362-Views]
Torrente Keeps Grip On Title Race As Zandbergen Claims Maiden Victory In Italy [3284-Views]
The Opulent Furniture Brand Brings a Lifestyle Worth Living To Dubai [3272-Views]
Drive Home The All-new Kia Carens, Now Available at Al Majid Motors [3218-Views]
ENEC Strengthens UAE-France Cooperation in Nuclear Energy Sector Through New E-Fusion 2022 [3202-Views]
Treating Idiopathic Scoliosis Without Surgery [3145-Views]
 
RSS Facebook Twitter LinkedDin DubaiPRNetwork.com on Instagram
 
Top Sections
 
Top Stories