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%
https://arab.news/n9hud
Morgan Stanley raises 2023 oil demand growth estimate by 36%
Closing Bell: Saudi Arabia’s main index closes in red at 10,364
RIYADH: Saudi Arabia’s Tadawul All Share Index closed lower on Sunday, shedding 185.05 points, or 1.75 percent, to end the session at 10,364.03.
Total trading turnover on the benchmark index stood at SR2.55 billion ($680 million), with 20 stocks advancing and 237 declining.
The Kingdom’s parallel market Nomu also retreated, falling 0.63 percent, or 147.19 points, to close at 23,371.82.
The MSCI Tadawul Index slipped 1.71 percent to 1,369.56.
Saudi Industrial Export Co. was the top gainer on the main market, with its share price jumping 9.87 percent to SR2.56.
Shares of Naqi Water Co. rose 2.53 percent to SR58.80, while Shatirah House Restaurant Co. advanced 2.18 percent to SR9.39.
On the downside, Gulf Union Alahlia Cooperative Insurance Co. posted the steepest decline, with its share price falling 4.61 percent to SR10.14.
On the announcements front, Scientific & Medical Equipment House Co. said it had been awarded a contract valued at SR260.98 million by the Ministry of Human Resources and Social Development to supply uncooked food materials and catering items to beneficiaries at the ministry’s residential branches across the Kingdom.
The project scope also includes providing cooked meals to selected anti-begging offices over a 24-month period, according to a Tadawul statement. The company added that the financial impact of the contract will begin in the fourth quarter of this year.
It said further developments would be disclosed in due course after all relevant parties sign the final contract and a copy is received.
Shares of Scientific & Medical Equipment House Co. edged up 0.31 percent to SR32.44.
Separately, Dr. Soliman Abdel Kader Fakeeh Hospital Co. and its subsidiaries signed an agreement with Oloof Development Co., a wholly owned subsidiary of Jazan Municipality, to lease a strategic land plot in Jazan City for SR217.99 million.
According to a Tadawul statement, the land, which spans 34,581 sq. meters, will be used to develop an integrated healthcare facility under a 50-year lease.
The company said the financial impact of the agreement is expected to begin once the medical facility is completed and becomes operational.
Shares of Dr. Soliman Abdel Kader Fakeeh Hospital Co. fell 1.92 percent to SR33.74.
