Baku, Azerbaijan, July 15
By Leman Zeynalova - Trend:
In the Middle East, oil demand is expected to rise by 0.08 mb/d over 2019, mainly as a result of the assumed improvement in the economy, Trend reports citing OPEC Monthly Oil Market Report.
“In terms of sectors, petrochemicals and transportation are foreseen providing support to oil demand growth in 2020. Light distillates are forecast to grow the most in 2020, with diesel fuel filliping to positive growth in light of improving economic projections and the low baseline of comparison,” reads the report.
OPEC believes fuel oil is projected to decline in 2020 as fuel displacement programs challenge demand.
Saudi Arabia is expected to account for the biggest growth in demand, driven by the need for gasoline and diesel oil, petrochemical feedstock, construction fuel and crude oil for direct use, according to the cartel.
“On the downside, geopolitical issues could have a negative impact on oil demand next year, as could further subsidy reductions or major substitution programs. Total oil consumption for the Middle East is expected to reach 8.23 mb/d,” reads the report.
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