Jet keeps driving European distillate demand growth in 2019

Hellenic Shipping:

According to ESAI Energy’s recently released Europe Watch Products, European jet fuel demand will rise by just 30 000 bpd this year, compared with 60 000 and 80 000 bpd in 2018 and 2017, respectively, as growth in both passenger and freight air traffic continues to slow. Nevertheless, jet fuel will continue to account for the vast majority of total distillate demand growth in the region.

Jet keeps driving European distillate demand growth in 2019

Hydrocarbon Engineering:

According to ESAI Energy’s recently released Europe Watch Products, European jet fuel demand will rise by just 30 000 bpd this year, compared with 60 000 and 80 000 bpd in 2018 and 2017, respectively, as growth in both passenger and freight air traffic continues to slow. Nevertheless, jet fuel will continue to account for the vast majority of total distillate demand growth in the region.

Will 2019 Be More Dangerous for the U.S. and China?

Another naval incident in the South China Sea has the U.S. claiming freedom of navigation and China claiming provocation. Military conflict remains unlikely, but relations between China and the U.S. are fraying beyond just the trade war. The continued economic clash with Washington coupled with a Chinese economic slowdown, policy uncertainty in Washington, and the possibility of provocative actions by Taiwan or Japan could precipitate more serious conflict.

U.S. Gasoline Exports Continue to Grow in 2019

Hellenic Shipping News:

According to ESAI Energy’s recently released One-Year Global Fuels Outlook, the U.S. gasoline surplus will expand by roughly 80,000 b/d next year as demand continues to plateau and output keeps rising. Since first moving into surplus in 2016 the U.S. gasoline balance has risen steadily to roughly 350,000 b/d this year. As a result of a growing surplus, combined U.S. exports of finished gasoline and motor gasoline blending components will rise to over 1.0 million b/d next year.

ESAI Energy Expects U.S. Gasoline Exports to Maintain Growth

World Pipelines:

According to ESAI Energy’s recently released One-Year Global Fuels Outlook, the US gasoline surplus will expand by roughly 80 000 bpd next year as demand continues to plateau and output keeps rising. Since first moving into surplus in 2016 the US gasoline balance has risen steadily to roughly 350 000 bpd this year. As a result of a growing surplus, combined US exports of finished gasoline and motor gasoline blending components will rise to over 1.0 million bpd next year.

China’s Oil Demand Will Surprise to the Upside in 2019

Hellenic Shipping News:

Contrary to some observers who focus intently on trade data as a proxy for demand, China’s total oil product demand rose by only 150,000 b/d in 2018. This is part of the reason why the global oil market is so weak as the year comes to an end. China’s oil demand will surprise again in 2019, but this time by rising by over 400,000 b/d, according to ESAI Energy’s latest China Watch. This rebound is comprised mainly of non-marketed naphtha at two new petrochemical integrated refineries, as well as LPG demand from a wave of PDH investment.

Peace Deal in South Sudan adds another 70,000 b/d of crude to market

Hellenic Shipping News:

As the market eagerly awaits an OPEC+ deal, non-OPEC producers continue to make gains. Sudan and South Sudan are likely to raise crude oil production in 2019, according to ESAI Energy’s recently published Africa Watch. A peace deal in September halted South Sudan’s five-year civil war between forces loyal to President Salva Kiir and others backing Vice President Riek Machar. The peace deal has, for now, stopped fighting that has decimated Sudan and South Sudan’s crude production since the latter’s independence in 2011.

Peace deal in South Sudan adds crude to market

World Pipelines:

As the market eagerly awaits an OPEC+ deal, non-OPEC producers continue to make gains. Sudan and South Sudan are likely to raise crude oil production in 2019, according to ESAI Energy’s recently published Africa Watch. A peace deal in September halted South Sudan’s five year civil war between forces loyal to President Salva Kiir and others backing Vice President Riek Machar. The peace deal has, for now, stopped fighting that has decimated Sudan and South Sudan’s crude production since the latter’s independence in 2011.