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Middle East to see growing oil demand in 2020

Oil&Gas Materials 13 December 2019 13:11 (UTC +04:00)
Middle East to see growing oil demand in 2020

BAKU, Azerbaijan, Dec.13

By Leman Zeynalova – Trend:

Oil demand growth in the Middle East is anticipated to increase by 0.06 million barrels per day (mb/d) in 2019 and by 0.07 mb/d in 2020, Trend reports with reference to OPEC December Oil Market Report (MOMR).

For the rest of 2019 and 2020, Middle East oil demand growth is expected to be challenged by many aspects, mostly related to geopolitical issues and economic transformation policies, including subsidy reduction programs, according to the cartel.

OPEC expects oil demand to rise in Saudi Arabia, Iraq, the United Arab Emirates (UAE) and Kuwait in 2020.

“Transportation fuels, particularly gasoline, and industrial fuels, predominantly diesel and residual fuel oil, are projected to play a significant part in the total oil demand growth of the region,” said the report.

OPEC estimates show that in October 2019, oil demand growth in Iraq flipped into positive territory after six months of declines, as data indicated a steady increase of around 0.03 mb/d from the levels seen in October 2018.

“Total product consumption is assumed at 0.76 mb/d. All product categories saw positive performances apart from residual fuel oil, which declined mainly as a result of displacement with other fuels. Residual fuel oil dropped by 0.05 mb/d y-o-y.”

Oil demand increased in Kuwait, particularly in relation to petrochemical feedstock as well as transportation fuels, according to the report.

“Oil demand increased by a solid 0.13 mb/d in September 2019, as compared to the same month in 2018. A similar trend was observed in the UAE, where gains were recorded across the barrel,” said the cartel.

Global oil demand in 2019 is anticipated to rise by 0.98 mb/d, unchanged from the previous month’s report, while in 2020, it is anticipated to increase by 1.08 mb/d to average 100.88 mb/d.

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