Asian Oil De­mand to Hit a Record High, while Watch­ing the Mid­dle East’s Mar­ket

EME Outlook - - News -

Asian oil de­mand will hit a record in April, just as global crude val­ues are lifted to lev­els not seen in three years by Mid­dle East sup­ply risks and top ex­porter Saudi Ara­bia with­hold­ing out­put and nois­ily push­ing for prices at $80 to $100 per bar­rel.

Most an­a­lysts have pointed to es­ca­lat­ing Mid­dle East con­flicts, a cri­sis in Venezuela, and the sup­ply cuts of Saudi Ara­bia and other pro­duc­ers as the main driv­ers.

“Ris­ing ten­sions in the Mid­dle East have likely played a role in oil price strength, but we be­lieve a tight phys­i­cal mar­ket is the key driver,” US in­vest­ment bank Jef­feries said in a note to clients.

Trade data in Thom­son Reuters Eikon shows seaborne im­ports of crude oil by Asia’s main buy­ers will hit a record this month, a big por­tion go­ing to slake China’s vo­ra­cious thirst.

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