Curious on your thoughts regarding q3/q4 demand in the face of expiring stimulus, and the impending global supply chain crunch that is going to result in shortages of everything during the rest of the year. How does this affect demand for oil and oil products from now through year end? Is price predicting inventory builds?
Hi Mark, we don't think it'll be much of a factor. 2021 will largely be about recovery, just back to baseline demand as COVID/Delta fades, and 2022 will be growing above that. While credit and fiscal impulse fades, the reality is global GDP continues to grow, which will be the larger determinant of oil consumption. We'll address it in the next article.
Curious on your thoughts regarding q3/q4 demand in the face of expiring stimulus, and the impending global supply chain crunch that is going to result in shortages of everything during the rest of the year. How does this affect demand for oil and oil products from now through year end? Is price predicting inventory builds?
Hi Mark, we don't think it'll be much of a factor. 2021 will largely be about recovery, just back to baseline demand as COVID/Delta fades, and 2022 will be growing above that. While credit and fiscal impulse fades, the reality is global GDP continues to grow, which will be the larger determinant of oil consumption. We'll address it in the next article.