Sustained growth of NGLs in the period through 2020 will leave LPG struggling to catch up.
Hellenic Shipping News:
In 2019, production growth will necessarily slow-down in two key US shale basins due to pipeline constraints, according to ESAI Energy’s recently published North America Watch. Crude oil from the booming Permian Basin in West Texas has already been impacted with steep price discounts from a lack of pipeline takeaway, but the Bakken in North Dakota will start to feel the pinch next year as record production levels fill available pipeline space. Since production growth will slow down but not decline, these regions will be increasingly dependent on sending crude by railcar to get to markets in 2019.
In its recent 2-Year Global Crude Oil Outlook, ESAI Energy asserts that the global oil supply/demand fundamentals will be generally balanced in 2019, but product market weakness will build in, late in 2020.
After remaining flat this year, Africa’s diesel deficit will grow by 20,000 b/d in 2019 to reach 885,000 b/d as demand growth of more than 40,000 b/d outpaces supply increases.