Fuel demand will continue to be strong next year as economies recover from the pandemic, analysts say.
Fuel costs will remain high until at least 2024, analysts at Wood Mackenzie said, Reuters wrote.
The reason for the high price is said to be a disruption in Russia’s oil supply.
Analysts also noted that refineries are having difficulty meeting demand recovering from the pandemic. The pressure should ease in the second half of 2023 as several large new refineries are expected to start, including in the Middle East
So far, record prices for gasoline and diesel in the US, Europe and elsewhere have lowered global oil demand by approximately 1 million barrels per day, about 1% of global demand, according to analyst Alan Gelder.
“The system looks very, very tight until there’s a small margin of new (refining) capacity,” he said.
At the same time, it was noted that the refinery’s profit was at a high level of approximately $ 30 per barrel.
WoodMac expects oil prices to average about $ 100 per barrel next year, compared to $ 110 this year. The price of Brent oil is currently at approximately $ 120 per barrel.
Gelder said the refining sector is operating at its maximum as much as possible and prioritizing diesel, but supply remains insufficient to meet demand as the economy continues to recover from the COVID-19 pandemic.
OPEC predicts a slowdown in global oil demand growth next year to 2 million barrels per day from 3.36 million this year.
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Source: korrespondent
I am Dylan Hudson, a dedicated and experienced journalist in the news industry. I have been working for Buna Times, as an author since 2018. My expertise lies in covering sports sections of the website and providing readers with reliable information on current sporting events.