NEW YORK: Morgan Stanley has raised its global oil demand growth estimate for this year by about 36 percent, citing growing momentum in China’s reopening and a recovery in aviation, but flagged higher supply from Russia as an offseting factor.
Global oil consumption is now expected to increase by about 1.9 million barrels per day, versus its previous 1.4 million bpd forecast, the bank said in a note dated Tuesday.
“Mobility indicators for China, such as congestion, have been rising steadily,” while “flight schedules have firmed-up the outlook for jet fuel demand,” the bank said.
But supply from Russia has been stronger than expected, leading to a slightly smaller than previously assumed deficit in the second half of the year, analysts at the bank wrote, trimming their Brent oil price forecast for that period to $90-100 a barrel from $100-110 previously.
“We previously estimated a 1 mb/d year-on-year decline in 2023, which we moderate to 0.4 mb/d,” the bank said, referring to its Russian output outlook in million barrels per day.
Earlier this month, Goldman Sachs cut its 2023 Brent price forecast and raised its global supply forecasts for 2023 and 2024, with Russia, Kazakhstan and the US the most notable upward adjustments.
But Goldman also noted that a 1.1 million bpd rise in Chinese demand this year should push oil markets back into a deficit in June.
Oil prices fell for a third straight session on Wednesday, with benchmark Brent crude trading around $82.75 per barrel on worries over the impact of higher US interests on economic growth and fuel demand.
However, expectations of tighter global supplies and rising demand from China cushioned the overall price weakness.
Morgan Stanley raises 2023 oil demand growth estimate by 36%
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Morgan Stanley raises 2023 oil demand growth estimate by 36%
Saudi Arabia’s cultural sector is a new economic engine between Riyadh and Paris, says ambassador
RIYADH: Culture has become a fundamental pillar in bilateral relations between France and Saudi Arabia, according to the French Ambassador to the Kingdom, Patrick Maisonnave.
Maisonnave noted its connection to the entertainment and tourism sectors, which makes it a new engine for economic cooperation between Riyadh and Paris.
He told Al-Eqtisadiah during the opening ceremony of La Fabrique in the Jax district of Diriyah that cultural cooperation with Saudi Arabia is an important element for its attractiveness in the coming decades.
La Fabrique is a space dedicated to artistic creativity and cultural exchange, launched as part of a partnership between the Riyadh Art program and the French Institute in Riyadh.
Running from Jan. 22 until Feb 14, the initiative will provide an open workspace that allows artists to develop and work on their ideas within a collaborative framework.
Launching La Fabrique as a space dedicated to artistic creativity
The ambassador highlighted that the transformation journey in the Kingdom under Vision 2030 has contributed to the emergence of a new generation of young artists and creators, alongside a growing desire in Saudi society to connect with culture and to embrace what is happening globally.
He affirmed that the relationship between the two countries is “profound, even cultural par excellence,” with interest from the Saudi side in French culture, matched by increasing interest from the French public and cultural institutions unfolding in the Kingdom.
Latest estimates indicate that the culture-based economy represents about 2.3 percent of France’s gross domestic product, equivalent to more than 90 billion euros ($106.4 billion) in annual revenues, according to government data. The sector directly employs more than 600,000 people, making it one of the largest job-creating sectors in the fields of creativity, publishing, cinema, and visual arts.
Saudi Arabia benefiting from French experience in the cultural field
Maisonnave explained that France possesses established cultural institutions, while Saudi Arabia is building a strong cultural sector, which opens the door for cooperation opportunities.
This comes as an extension of the signing of 10 major cultural agreements a year ago between French and Saudi institutions, aiming to enhance cooperation and transfer French expertise and knowledge to contribute to the development of the cultural system in the Kingdom.
He added that experiences like La Fabrique provide an opportunity to meet the new generation of Saudi creators, who have expressed interest in connecting with French institutions and artists in Paris and France.
La Fabrique encompasses a space for multiple contemporary artistic practices, including performance arts, digital and interactive arts, photography, music, and cinema, while providing the public with an opportunity to witness the stages of producing artistic works and interact with the creative process.
