US needs comprehensive deal with China to remain oil demand driver

Baku, Azerbaijan, July 5

By Leman Zeynalova – Trend:

The US should have a comprehensive deal with China in order to remain the core driver of oil demand, Trend reports with reference to Fitch Solutions Macro Research (a unit of Fitch Group).

“Developed markets outside of the US are registering significant declines and will, in our view, continue to do so. April estimates for European total fuels demand declined by 3.1 percent in April from a year earlier. In part, this reflects weakened economic performance as political and trade uncertainties drag on confidence and investment, particularly in the manufacturing sector. The declines are also due in part to more structural trends in fuel efficiency gains and a switch away from oil. The US has been a core driver of global oil demand growth over recent years. Recent demand figures show the US levels picking up in April, but we see sustained gains in demand needing to come from a comprehensive deal with China in order to maintain this momentum,” reads the report of Fitch Solutions.

In its core view, the company sees the US economy stabilise over Q3 and into Q4 as trade risks de-escalate and global stimulus measures start feeding through. “The US is still responsible for almost 28 percent of global demand any growth there will continue to support demand globally.”

EM demand ex-China will increasingly carry the burden of global demand growth, with the outlook on demand in other Asian EMs – notably India and South East Asia – remaining bright, according to the report.

“Although we note recent sharp declines in demand from the EM we still see that over the medium term, oil demand growth will become increasingly broad-based across the region. Commodity-dependent markets have seen growth prospects improving, supporting a stronger demand outlook in Latin America, the Middle East and Africa,” said Fitch Solutions.

It's been more than a year since US President Donald Trump ignited a trade war with China in an attempt to address business practices seen as unfair.

The largest economies have since slapped steep duties on each other's products and threatened to further escalate tensions.

---

Follow the author on Twitter: @Lyaman_Zeyn

Iran’s Shazand Oil Refining Company supplies fuel to IRISL Group
Iran’s Shazand Oil Refining Company supplies fuel to IRISL Group
Iranian government eyes to attract investors for Markan coast development
Iranian government eyes to attract investors for Markan coast development
Iran to submit budget plan for new year
Iran to submit budget plan for new year
Loading Bars
Latest
Bryansk Machine-Building Plant ready to increase locomotives supply to Turkmenistan
Iran’s Shazand Oil Refining Company supplies fuel to IRISL Group
Armenia is like Trojan horse inside CSTO - Turkish government
Russia's Bryansk Machine-Building Plant, Turkmenistan discuss terms of locomotives delivery
Cherries, grapes top list of fruits and vegetable products exported from Uzbekistan
Total volume of non-bank deposits in Georgian banking sector up
Azerbaijani MFA calls on int'l organizations to investigate breach of children rights by Armenia
Singapore ready to share with Uzbekistan experience in forming digital gov’t
France's import of defense industry goods from Turkey decline
Info on death of defense minister of illegal regime in Nagorno Karabakh issued
Assistant to Azerbaijani President Hikmat Hajiyev interviewed by Al Jazeera TV channel (VIDEO)
Armenia established corridor to bring PKK into Azerbaijan’s occupied territories - Assistant to Azerbaijani president
Blast at Pakistan religious school kills at least seven, including children
Uzbekistan to introduce Chinese standards into automotive industry
EBRD, EU provide another support to small, medium-sized businesses in Turkmenistan
Azerbaijan strongly condemns shelling of Euronews' crew by Armenia - president's aide (VIDEO)
Iranian currency rates for October 27
Tractors with telepathic system used to cotton planting in Turkmenistan’s Lebap region
Uzbekistan reveals its COVID-19 data for October 27
“Jewish Journal” publishes an article on Armenian protest in Los Angeles equating Israel to Nazi Germany
Armenia didn't respond to Azerbaijan's requests for release of war prisoners - Commission
Iranian government eyes to attract investors for Markan coast development
Iran to submit budget plan for new year
Armenia confirms liberation of Gubadli city by Azerbaijan
Iran`s return to FATF blacklist restricts its exports
Destroyed military equipment of Armenian Armed Forces - LIST
Chief of staff of Armenian Army motorized rifle division killed
Latest situation at front line on Oct. 27
Chinese mainland reports 16 new imported COVID-19 cases
Brazil's COVID-19 cases surpass 5.4 mln
U.S. Senate confirms Trump's Supreme Court pick Barrett in nearly party-line vote
5.2-magnitude earthquake hits central Iran, no casualties
Czech Republic to introduce night curfew from Wednesday
61 more coronavirus patients die in Moscow in past day
Germany reports 8,685 new COVID-19 cases
Footage from liberated from occupation Gubadli city (VIDEO)
Footage from liberated from occupation Khanligr village of Gubadli region (VIDEO)
Armenia does not want to take bodies of its deceased soldiers as it fears anger of people - Assistant to the President of Azerbaijan
Kazakh PM meets with Turkish Defense Minister
Footage from liberated from occupation Padar village of Gubadli region (VIDEO)
Azerbaijan neutralizes one of 3 missiles shot by Armenian troops at Azerbaijan's Tartar
Azerbaijan's Bank Association denies lies spread by Armenian side
Effective co-op in field of border security established between Azerbaijan, Iran
Armenian Armed Forces shell Azerbaijan’s Tartar by using 'Smerch' missiles
Armenia indiscriminately targets civilians - Assistant to Azerbaijani president
Azerbaijanis hold rally in California, condemning Armenian terror (PHOTO)
Azerbaijani compatriots living in Minnesota hold protest rally (PHOTO)
Armenian Armed Forces shelling Azerbaijan's Tartar city, villages
Armenian armed forces shelling Tartar city with artillery, missiles in gross breach of humanitarian ceasefire
Iran's powder detergent production grows
Azerbaijanis in Denmark hold protest rally against Armenian terror (PHOTO)
Turkish embassy in Georgia talks joint energy projects of Georgia, Azerbaijan, Turkey
Protest rally against Armenian attack on Ganja held in Bielefeld, Germany (PHOTO)
Iranian Energy Exchange announces products to be on sale October 27
Armenian Armed Forces’ quadrocopter destroyed by Azerbaijani troops
Al Jazeera posts article covering aftermath of Armenian missile attack on Ganja
Baku's secondary housing prices show monthly decline
Investments in Iran's capital market increase
Uzbek Reconstruction and Development Fund to support creation of Export Support Fund
Turkey's export of defense products to Morocco plunges
Nagorno-Karabakh region to be liberated sooner or later: press secretary of Turkish president
USD falls against Uzbek soum for the first time in three months
Work connected with laying of gas pipelines on freed Azerbaijani territories kicked off (PHOTO/VIDEO)
Volume of maritime cargo shipment via Turkey from Spain disclosed
Turkmenistan significantly increases import of wheat flour from EAEU countries
Azerbaijani railway operator admitted to consortium of Trans-Caspian Transport Route
Georgia reveals results of 18 foreign exchange auctions conducted by National Bank
Iran Khodro reveals amount of funds saved thanks to domestic manufacturing
Export of Turkish-made defense products to China slumps
Armenian Armed Forces fire at school in Aghdam (PHOTO)
Assistant to Azerbaijani president comments on photo of Armenia's defense minister together with Armenian soldiers
Macron's anti-Islamic statements point to extreme misunderstanding of religion - Arab analyst
Uzbekistan’s Kashkadarya tops list of regions implementing foreign investments
Heritage Foundation's Foreign Policy Studies Center Director comments on photo showing Russian field camp set up near Armenian Tegh
Georgia sees increase in hazelnuts export
Georgia reveals volume of exported apples
U.S. regrets EU move on tariffs, seeks deal on Boeing-Airbus row
Russia seeking to be stabilizer in South Caucasus, says Russian expert
Uzbekistan discusses strengthening multilateral co-op with China and S. Korea
President Aliyev congratulates commanders of joint military corps who distinguished themselves in liberation of Gubadli city, villages of Gubadli district from occupiers
Review of statistics of people registered within state program 'Remotely from Georgia'
Volume of trade turnover between Turkmenistan, Russia’s Perm Krai revealed
Azerbaijani army does not fire at civilians - Defense Ministry
President Ilham Aliyev interviewed by Italian Rai 1 TV channel (PHOTO)
Iran launches new water treatment facility in Tehran
Iran studies Famotidine as Coronavirus treatment
Industrial production in Karabakh to increase in post-conflict period - CAERC head
Turkish president urges to boycott French goods
Work on power supply to strategic facilities in freed Azerbaijani territories underway (PHOTO)
Bank of Georgia suffers loss
S&P Global Ratings expects Azerbaijan's export to grow in next years
Iran’s Bahar Azadi gold coin price falling
Wildfire breaks out in Azerbaijan's Dashkasan district from Armenian attacks (VIDEO)
SOCAR considering new investments in Turkey
Romania's import of Azerbaijani products for 9M2020 revealed
Armenian Armed Forces fire at Azerbaijan’s Tartar district
Price of most Georgian companies’ shares up on London Stock Exchange
UK armed forces take control of ship in English Channel, seven people detained
Mobile phones and smartphones import down in Georgia
Azerbaijan confirms 131 more COVID-19 recoveries
All news