11/29 Closing prices / revised 11/30/2023  08:05 GMT 11/29    OPEC Basket    83.89 +0.49 | 11/29    Mezcla Mexicana de Exportación   Mexico Basket (MME)   $74.39  +1.37  | 10/31     Venezuela Basket (Merey)  $72.54  – 3.00  (Source: Economia Hoy)  | 11/29    NYMEX WTI Texas Intermediate January CLF24   $77.86 +1.45    | 11/29    ICE Brent January  BRNF24   $83.10   +1.42  | 11/29    NYMEX Gasoline December  RBZ23    $2.28   +2.4% | 11/29     NYMEX  Heating Oil  December HOZ23   $2.89  -0.6% | 11/29     Natural Gas January NGF24    $2.80 -1.2%  | 11/22    Active U.S. Rig Count (Oil & Gas)    622     +4    | 11/30     USD/MXN Mexican Peso  17.2702 (data live  | 11/30   EUR/USD    1.0954  (data live)  | 11/30    US/Bs. (Bolivar)   $35.49390000  ( data BCV)    |      

Drag on Oil Demand in China and US Is Limiting Rally, Citigroup’s Morse Says – Bloomberg

An oil pumpjack in the Permian Basin oil field in Odessa, Texas. Photographer: Joe Raedle/Getty Images
An oil pumpjack in the Permian Basin oil field in Odessa, Texas. (Joe Raedle/Getty)

Chunzi Xu, Romaine Bostick and Katie Greifeld, Bloomberg News

EnergiesNet.com 10 02 2023

The drag on oil demand in China, Europe and the US is weighing heavily on crude prices, capping the potential gains from OPEC+ supply cuts, Citigroup Inc. analyst Ed Morse says.

China is cutting back purchases of expensive crude and exporting more high-value refined products as the country grows to be almost as important to oil markets as OPEC+, Morse said in an interview on Bloomberg Television. The nation’s pullback will counter crude’s recent rally and help shift the oil market to a surplus next year, with Brent collapsing to the low $70s a barrel, Morse wrote in a note earlier today.

China’s current oil inventories could satisfy about 130 days of its demand, outstripping the global standard of around 90 days, he said.

“They’ve really overdone it,” said Morse, Citi’s global head of commodities research. 

Oil production growth from Iran, Iraq, Libya, Nigeria and Venezuela will continue at the rate of around 1 million barrels a day, Morse said, a source of new supplies that has been underestimated by the Organization of Petroleum Exporting Countries and the International Energy Agency alike. 

Oil fell below $90 a barrel on Monday on worries that further interest rate hikes could slow the US economy.

bloomberg.com 10 02 2023

Share this news

Support EnergiesNet.com

By Elio Ohep · Launched in 1999 under Petroleumworld.com

Information & News on Latin America’s Energy, Oil, Gas, Renewables, Climate, Technology, Politics and Social issues

Contact : editor@petroleuworld.com

CopyRight©1999-2021, EnergiesNet.com™  / Elio Ohep – All rights reserved

This site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a ‘fair use’ of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use’, you must obtain permission fromPetroleumworld or the copyright owner of the material.

Scroll to Top