Oil demand picture is mixed | Rigzone
Demand picture is mixed as Covid-19 lingers in some regions and leads to more restrictions, especially in China.
That’s according to Rystad Energy’s Head of Oil Markets, Bjornar Tonhaugen, who made the statement in a market memo sent to Rigzone on Monday, adding that China’s zero-covid policy has caused another wide-scale lockdown. of the city following an epidemic.
In the note, Tonhaugen noted that Australia has reopened its borders for the first time in two years, but pointed out that Hong Kong, Indonesia and Japan are seeing increases in Covid-19 cases, “so the outlook are more than mixed for the recovery in demand”.
In a separate note sent to Rigzone on Friday, Tonhaugen said a spike towards $100 in crude shouldn’t be ruled out in the near term, but added that downside risks are “abundant.” These would include Omicron setbacks on demand, economic growth issues and financial market corrections as central banks battle inflation.
Since the World Health Organization (WHO) announced on November 26, 2021 that it had designated B.1.1.529 as a variant of concern named Omicron, global weekly confirmed cases of Covid-19 have increased for eight consecutive weeks and saw a new peak of 23.2 million cases in the week starting Jan. 24, according to current WHO figures. This consecutive weekly rise was finally halted for the first time during the week beginning January 31, according to the latest WHO data.
Global weekly Covid-19 deaths have increased for five consecutive weeks, but are still below the peak, which was set in the week beginning January 18, 2021, at 102,816 deaths, according to current WHO figures.
At the time of this writing, the price of Brent crude stood at $90.74 per barrel. This time last year, the price of the commodity was in the low range of $60 per barrel.
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