BofA the latest oil bull to charge in…
Asia continues to lead global energy demand growth…
Following the crisis that shook energy markets last year, Asia is leading once again global energy demand growth despite concerns about China’s economic outlook. While industrial activity and real estate are weak, transportation trends in China remain rather positive, keeping petroleum fuel export quotas low and Asian product markets relatively tight. Moreover, China has continued to build oil inventories for months to match its increasing import dependency. Meanwhile, China domestic refineries have been running strong, ultimately pushing crude imports to a near-record 12.4mn b/d in August. Should OPEC+ maintain the ongoing supply cuts through year-end against Asia’s positive demand backdrop, we now believe Brent prices could spike past $100/bbl before 2024.
