Well-known hedge funds: Oil demand will exceed expectations

According to the US oil price network reported on July 22, well-known hedge fund manager Pierre Anduran said on social media on Friday that even if the global economic recession, oil demand may exceed expectations
.

The hedge fund manager said consumer demand has been well below trend levels
over the past few years due to the pandemic.

Anduran pointed out that from 2000 to 2010 and 2010 to 2019, the average annual oil demand growth was quite stable, about 1.
2 million barrels per day to 1.
3 million barrels per day, which is basically in line
with population growth.
Based on 2019, based on an annual demand growth of 1.
2 million b/d, the average world demand this year will be 104.
2 million b/d or 5 million b/d higher than currently expected at 99.
2 million b/d
.

"Even in a very weak economic environment, oil demand can still rise unexpectedly," he added
.

Just weeks before the geopolitical conflict erupted, Anduran said that by the end of this year, oil prices could hit a record high of $200 a barrel, because neither African members of OPEC+ nor oil producers in the United States that extract shale oil can make up for the supply gap
of the big producers.

Considering that high oil prices are weighing on crude oil demand, and many central banks have eased inflationary pressures by raising interest rates will lead to economic slowdown or even recession, international institutions recently lowered their global crude oil demand expectations
this year.

For example, the International Energy Agency last week estimated global oil demand growth to 1.
7 million b/d this year, lowering its forecast for global oil demand growth this year by 100,000 b/d
.

The IEA said in an oil market report last week: "Rising oil prices and deteriorating economic conditions have begun to affect global oil demand, but strong power generation demand and economic recovery in Asia are partially offsetting this impact
.
" ”