When Will Oil Demand Hit Peak Velocity?
Right now, according to Standard Chartereds latest oil market report, which was sent to Rigzone late Friday. In the report, the company noted that it expects the month on month momentum of global demand to reach a peak in June and July. Standard Chartered is forecasting that global demand will increase from 94.97 million barrels per day in May to 97.22 million barrels per day in June and 99.03 million barrels per day in July. After July, the company said it sees the pace of increase moderating, with 100 million barrels per day forecasted for December and 101 million barrels per day forecasted for July 2022. We expect two-thirds of the increase in oil demand from May 2021 to July 2022 to occur this month and next month alone, Standard Chartered stated in its latest oil report. We have constructed an oil demand-weighted mobility index for 10 large consumers that together make up most of the increase on the path to 100 million barrels per day, Standard Chartered added in the report. After stalling in March as Indias second coronavirus wave took hold, the index is now rising again; the seven-day average reached -19.2 on 1 June, the highest since 19 March 2020 and in line with our view of a strong current demand momentum, Standard Chartered went on to state. In a previous report back in April, Standard Chartered noted that U.S. inventories of crude oil and oil products fell below the five-year average for the first time since August 2018. The surplus peaked at just above 180 million barrels in July last year, the report showed. Standard Chartered is a leading international bank which employs 85,000 people around the world, according to its website. The business has more than 160 years of experience and is among the top 100 largest companies listed on the London Stock Exchange, its site highlights. To contact the author, email andreas.exarheas@rigzone.com