IEA OMR: Revises down oil demand growth projections for 2022 by 70k BPD, amid China lockdowns and elevated prices
Important
SourceNewsquawk
SectionEnergy & Power
Russia related
- Overall decline of Russian supply by 1.6mln BPD in May and 2mln BPD in June; could expand to circa. 3mln BPD from July onwards
- Despite sanctions, total Russian oil exports increase MM in April by 620k BPD; Russia shut in nearly 1mln BPD of oil in April.
- New embargoes could accelerate a reorientation of trade flows of Russian oil towards Asia.
- Does not expect an acute supply deficit amid the deteriorating Russian supply situation.
China/COVID
- Expects steadily rising volumes from Middeast OPEC+ states and the US as COVID lockdowns in China sap demand.
Refinery Commentary
- Refinery runs set to increase by 4.7mln BPD between now and August, market tightness will continue
- Refinery margins have surged due to depleted product inventories and constrained refinery activtiy.