September 04, 2019

Refined Product Demand Assessment: September

  • The lackluster demand that markets have feared since the fourth-quarter of 2018 is yet to materialize but warning signs are flashing and future releases could show that summertime demand was significantly lower than currently expected. Oil's low-price environment has helped to stimulate refined product demand but there are limitations to these increases, and slowing economic activity means that product stocks have been building. 
  • In the Americas, our expectations for US demand growth appear to be panning out, although South America has proven slightly weaker than even our conservative forecasts expected. The declines in Europe could worsen if demand tracks with the latest manufacturing and export data from the EU but due to data lags, this will not be confirmed until October.

Refined Products Heat Map_September

Source: Stratas Advisors, Jodi, EIA

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