BP Cuts Crude Oil Demand Forecast
January 30, 2023
Bloomberg reports Russia’s invasion of Ukraine has accelerated the move away from oil and gas, prompting BP Plc to cut demand forecast in its latest annual energy outlook. The war has also weighed on the global economy, pushing gross domestic product at least 2% lower by 2025. All three of these scenarios see oil and gas demand declining as renewables grow and transportation electrifies. The Organization of Petroleum exporting Countries, meanwhile will account for a greater share of oil supply – 45% to 65% by 2050.
Baker Hughes reported that oil rigs were down 4 last week. Total US oil rigs are now at 609. The US still has 74 fewer oil rigs than March 20, 2020.
Russia has increased its diesel supplies to African and Mediterranean ports in January as an EU embargo approaches, with traders in the short-term trying to find new selling outlets. Diesel supplies from Russian ports to Turkey have been increasing in recent months and totaled about 680,000 tons from January 1st – 25th, against 730,000 tons in all of December.
The US federal Reserve is expected to add 25 basis point to it Federal Funds rate at the conclusion of its meeting on Wednesday.
The Bank of England and the European Central Banks are expected to raise their rates as well.
OPEC + also meets this week and the current outlook is that they will leave production unchanged.