Insight
Oil market pain: checking on supply and demand progress
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
Events are moving swiftly since the 6 March OPEC+ meeting broke up without an agreement to cut production. Since then oil demand outside China is teetering on the verge of a sharp drop similar to what China saw in Q1 2020. On the supply side, Saudi Arabia swiftly slashed its oil prices after the OPEC+ meeting and says it plans to boost supply to 12.3 million b/d in April, by utilising storage releases. As a result, Brent prices have fallen sharply, to below $30 per barrel, from levels above $50 before the meeting. Macro Oils plans to release our updated short-term outlook on 30 March rather than early April. This Insight provides highlights of developments including: • Saudi pricing and production • OPEC and non-OPEC supply including Russia’s plans • Potential impact of low prices on non-OPEC production • US and China demand.
Table of contents
- Saudi Arabia’s swift response: Official Selling Prices and rising production
- Other OPEC producers and OPEC+ partners
- What matters to rebalance the market: reduce supply!
- Global oil demand: The pendulum swings
Tables and charts
This report includes the following images and tables:
-
Regional decline rates: North America, Asia and Latin America saw most pronounced impact from 2014/2015 price crash. Analysis as of our H2 2019 long term outlook – 2020-22 will changeChina’s highway traffic volume changesCoal consumption by major coastal power plants (Day 0 = Chinese New Year)China’s air traffic volumeU.S. Gasoline Demand, Year-on-Year Change
What's included
This report contains:
Other reports you may be interested in
Insight
What does the global oil market look like in 2019?
What's in store for the oil market in 2019? We consider OPEC behaviour, US tight oil production, global demand and geopolitical risk.
$1,350
Commodity Market Report
Macro Oils short-term outlook: March 2021
OPEC+ surprise, vaccine surge and US supply freeze recovery
$2,000
Commodity Market Report
Macro Oils short-term outlook: September 2021
Covid surges, OPEC+ meets and demand continues to recover
$2,000
