Crude Oil Prices Set to Rebound by September, Then Slide Into 2024: EIA

China’s appetite for crude oil has been lower than expected this year, largely due to a slowing economy and the increased adoption of electric vehicles (EVs). And the U.S.’s #1 economic and geopolitical rival is in the midst of another transition that could further weaken crude oil demand: Heavy-duty trucking in China is increasingly being powered by LNG instead of diesel. In today’s RBN blog, we discuss the trend toward LNG-fueled trucking in China and what it could mean for LNG exporters in the U.S. 

The International Energy Agency (IEA) and others have lowered growth targets for global oil consumption in the short term, while traders began a sell-off in crude benchmarks before the recent recovery in oil prices. Their main concern? China, which has accounted for a large part of global demand growth, has recently seen a sharp drop in oil demand due in part to an economic slowdown as well as a sharp increase in electric vehicle (EV) adoption. In today’s RBN blog, we will examine what’s happening in China, what it means for global oil demand, and where additional demand growth might come from. 

Crude prices have fallen worldwide by about 20 percent since June 2014, as increasing supplies have not balanced with lackluster demand worldwide. Here in the U.S. prices for the benchmark West Texas Intermediate (WTI) grade have strengthened against international benchmark Brent as refiners continue to operate at high capacity. However, recent signs of discord in producer’s organization OPEC suggest they cannot agree to curb output – keeping downward pressure on overall prices. Today we wonder if there is a bottom to the current price slide.