Arab
News, Wednesday, May 17, 2023 | Shawwal 27, 1444
AH
Oil steadies as IEA turns bullish on demand
RIYADH: Oil futures were steady on Tuesday after mostly weaker-than-expected
data from China muddied the outlook for demand from the world’s top crude
importer while US plans to refill its Strategic Petroleum Reserve underpinned
prices.
Brent crude futures rose $0.06, or 0.08 percent, to $75.29 a barrel at
12:30 p.m. Saudi time, while US West Texas Intermediate crude was at $71.14 a
barrel, up $0.03 cents, or 0.04 percent.
Both benchmarks rose more than 1 percent on Monday, reversing a
three-session losing streak.
The US Department of Energy said on Monday it would buy 3 million barrels
of crude oil for the SPR for delivery in August, and asked that offers be
submitted by May 31.
IEA says oil price downturn ignores looming supply crunch
Weeks of declining oil prices due to concerns over a possible recession
will clash with the outlook for scarce supply and robust demand later in the
year, according to the International Energy Agency.
“The current market pessimism ... stands in stark contrast to the tighter
market balances we anticipate in the second half of the year, when demand is
expected to eclipse supply by almost 2 million barrels per day,” the Paris-based
agency said.
The IEA raised its forecast for global oil demand by 200,000 bpd to 102
million bpd, noting that China’s recovery after the lifting of COVID-19 curbs
had surpassed expectations with demand reaching a record 16 million bpd in
March.
The world’s top oil importer is set to account for nearly 60 percent of
global demand growth in 2023, offsetting, along with India and the Middle East,
sluggish demand in developed countries.
Borrell urges EU to crack down on imports of Indian fuels made with
Russian oil
The EU should crack down on India reselling Russian oil into Europe as
refined fuel, including diesel, the bloc’s foreign policy chief Josep Borrell
said in an interview with the Financial Times.
India has emerged in the past year as a top buyer of Russian oil
following Moscow’s invasion of Ukraine on Feb. 24, 2022.
Access to cheap Russian crude has boosted output and profits at Indian
refineries, enabling them to export refined products competitively to Europe and
take a bigger market share.
Borrell told the newspaper that he will raise the issue with India’s
foreign minister, Subrahmanyam Jaishankar.
“If diesel or gasoline is entering Europe ... coming from India and being
produced with Russian oil, that is certainly a circumvention of sanctions and
member states have to take measures,” the EU’s chief diplomat said.
“That India buys Russian oil, it’s normal ... But if they use that in
order to be a center where Russian oil is being refined and by-products are
being sold to us ... we have to act,” Borrell said.