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

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.