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 8662 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
Records to Bounce, Flip and Soar for Guinness World Records Day 2021 [8430-Views]
New Ninjamas Nighttime Bedwetting Underwear Helps Kids To Conquer The Night [6982-Views]
The Perfect Autumn Look by essence [4891-Views]
LG Honored With 24 Awards for Innovation Ahead of CES 2022 [4887-Views]
Foreo Festive Gifts for the Well-Groomed Gentleman [4793-Views]
Festive FOREO Gifts for Skincare Gurus this Holiday [4084-Views]
SolarWinds Expands International Leadership Team in EMEA Market [3530-Views]
Line-up for 2022 Emirates Airline Festival of Literature Dazzles With the Creators of Stor... [3460-Views]
Go Green this Black Friday Cathay Pacific Offers Complimentary Carbon Offset [3382-Views]
4 FOREO Products That Will Completely Transform Your Skincare Routine [3300-Views]
Rado Winter Season-Feel The Moment [3296-Views]
Air Tanzania Announces Order for Boeing Freighter and Passenger Jets [3284-Views]
ASTRONEF is a New mechanical Masterpiece Presented by Ateliers Louis Moinet [3038-Views]
Symbolism and Style Defines Tanishq's Exclusive Year of the Fiftieth Collection [3013-Views]
UD Trucks Launches the new Euro 5 Range in the Region and Upgrades its Existing Quester & ... [2890-Views]
The Kia Concept EV9 Kia's All-Electric SUV Concept takes Center Stage at AutoMobility LA [2854-Views]
QNET Reinforces its Commitment to Sustainability with Global Reforestation Initiative [2837-Views]
Liverpool FC Retail Partner Seventy-8 Arranges for UAE Fans to Meet Jose Enrique at Its Ne... [2833-Views]
Comlux Launches New Hangar Project at Mohammed bin Rashid Aerospace Hub [2808-Views]
du Showcases 5G Controlled Robot Over Private 5G SA Network Leveraging AWS and Athonet Tec... [2767-Views]
CS Events to help Disrupt the $1.13 Trillion Events Industry by Deploying Technology and B... [2731-Views]
Celebrate UAE National Day with FreshToHome's Special Bouquets [2726-Views]
Celebrate the UAE This Year of the 50th With Mister Baker [2644-Views]
Channelling Power of the Mind and Body is the Key to Success, say Mindvalley Experts at Sh... [2608-Views]
Pandora and World-Renowned Author, Nadia Owusu, Release a Collection of Festive Stories to... [2587-Views]
 
RSS Facebook Twitter LinkedDin DubaiPRNetwork.com on Instagram
 
Top Sections
 
Top Stories