Key Points
The expected consumption drop in the two fuel types this year is well over half a million barrels-a-day versus pre-pandemic levels not far off a Belgiums worth of overall oil usage...
As a major importer of diesel-type fuel from the Middle East, India and the US, and a regular exporter of naphtha to East Asia and Latin America, any significant drop in Europes usage is likely to have knock-on effects for economies and oil markets around the world...
The numbers on naphtha are stark: consumption is set to fall more than a quarter this year versus 2021 to 844,000 barrels-a-day, the lowest its been in 48 years, according to Ciaran Healy, an oil market analyst at the International Energy Agency..
In China, demand is booming despite the travails of its property sector: during January-August of this year, diesel-type fuel was up by 40% versus the same period in 2019 and naphtha consumption has more than doubled in the corresponding period, according to JODI data...
Still, the trucking industry is showing signs of nascent recovery, and rail freight is rising as well, analysts at JPMorgan said.. Naphtha is typically used to make gasoline in the US while cheaper natural gas liquids a byproduct of drilling shale oil have become the preferred feedstock for petrochemicals...
You might be interested in
Monsoon batter diesel sales, petrol scrapes through in July
01, Aug, 23India Business News: Diesel sales dipped in July from a year ago as widespread rains and flooding in many parts of the country disrupted mobility and farm activity but pet
Jet fuel sales back to pre-Covid level in February on air travel frenzy
01, Mar, 24India Business News: Jet fuel sales surged in February as visa-free entry attracted more Indians to travel abroad. Demand from international and domestic flights increased
India expects fuel demand to grow 4.7% in FY24
23, Feb, 23Fuel consumption in 2023-24, a proxy for oil demand, could rise to 233.8 million tonnes from the revised estimate of 222.9 million tonnes for the current fiscal year ending in March, according to government forecasts.
China's aviation fuel demand seen up 13% in 2024: CNPC research
28, Feb, 24International Business News: BEIJING: China's aviation fuel consumption is likely to expand 13.