Concerns about weak oil demand in Asia and China in particular as well as plans by OPEC+ producers to unwind supply cuts are set to dominate discussions at the region’s largest annual gathering of energy traders next week.
It takes place against a backdrop of falling global oil prices, despite fears of escalating tensions in the Middle East, weighed down by worries over slowing global economic growth and oil demand from the world’s two biggest consumers – China and the U.S. “The biggest talking point is going to be demand,” said Amrita Sen, founder and director of research at consultancy Energy Aspects.Brent crude futures slipped toward $70 a barrel this week despite production outages in Libya and a two-month delay by OPEC+ to start unwinding supply cuts.
“This also means any further demand weakness will require OPEC+ to cut deeper from already record low production target levels.”“I think it is widely accepted that Trump would be more bearish for oil. But let’s not forget he is more likely to take a hawkish view against Iran,” said Warren Patterson, head of global commodities research at ING.