Asian Refiners’ Role in “Laundering” Russian Oil, Latest Oil Market Forecasts, and Oman’s LNG Boom
The global oil market is expected to experience high volatilities due to the inefficient, high-risk, and high shipping costs of the Russian oil “laundering” schemes that will keep Russian oil flowing to Europe.
Sanctions on Russia’s oil have shifted attention from OPEC+ and other oil producers to top oil refiners,
namely China and India.
Countries with spare refining capacities are set to make gains, while those that supported climate change policies to close refineries will lose.
China’s economic reopening is stirring chaos in the market. Questions are being raised about how bullish the event is, and how much of the reaction is based on mere perception.
There is enough spare production capacity within OPEC to handle demand growth in 2023. But tightness is expected in the fourth quarter, especially if non-OPEC producers failed to deliver the expected growth in production.
Oman’s LNG is playing an increasing role in Asia. Oman LNG’s decision to strike long-term contracts shows that these types of contracts are here to stay as they reduce risks for exporters and importers.
The role of spot LNG may not increase significantly above current levels as some experts have predicted.