The Strategist

Citi forecasts weak Chinese influence on energy markets in 2024

01/29/2024 - 02:41

Global energy markets won't be driven by China in 2024, commodity analysts at Citi forecast.

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According to the analysts’ assessment, which MarketWatch cites, China's economy would only receive little boost from the government's stimulus plans, and the amount of oil imported into the nation will essentially stay the same at 11.3 million barrels per day (bpd) as last year.

Citi notes that the country's oil consumption will only rise by 300,000 barrels per day, mostly due to petrochemicals. The bank's experts predict that the average daily production would rise by 100,000 bpd, but they do not think this will put significant pressure on the resource's price.

Additionally, they do not anticipate a significant rise in petroleum product exports. Simultaneously, analysts observe a decline in the depth of gasoline refinement and an emphasis on intermediate distillate production in the nation.

They believe that this year's distillate exports from China would surpass projections because of the significant crack spreads in the Asia-Pacific area.