Asia to drive oil demand growth
Saudi Arabia supplies more than half of Bangladesh’s crude imports, but Dhaka has been hit hard by a global surge in energy and food prices.—Reuters photo
Asia will lead oil demand growth of around 2 million barrels per day (bpd) in the second half of the year, a senior executive at Vitol said on Monday, an increase that could potentially lead to a shortage of supply and drive up prices.
International benchmark Brent crude has fallen to around $75 a barrel from a peak of nearly $140 in March last year, just after the disruption caused by oil producer Russia’s invasion of Ukraine. Prices have drawn support from output cuts by some members of the Organisation of the Petroleum Exporting Countries and allies, including Russia, announced in April.
“We are going into the second half of the year where, largely thanks to Asian demand growth, the world is going to need about 2 million bpd more than it needs now,” Mike Muller, Vitol Asia President, told the Middle East Petroleum and Gas Conference.
Published in The Express Tribune, May 23rd, 2023.
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