The 2019, global oil demand recorded a lower growth rate compared to the last 10 years.
Brent average price was $64 per barrel, and was roughly $7 a barrel lower than in 2018.
Rising geopolitical tensions and concerns about US-China trade had little impact on oil supply/demand balance and on Brent prices.
“Zero growth” of world oil production in 2019, as OPEC+ group cuts counterbalanced US growth. US production rose by 11%, further eroding OPEC’s market share.
Crude quality reported a strong discontinuity in 2019 with a great reduction of medium & sour crudes, which contributed to a lighter average produced barrel.
The quality balance showed a reduced supply in the medium heavy crudes (OPEC’s cuts, Iran and Venezuela) and a further appreciation of the relative price differentials.
However, Asia Pacific leads the global refining capacity growth accounting for almost 90% of the 1.5 Mb/d increase as against 2018.
Gas and renewables review
In 2019, global gas demand has continued to grow for the 10th year in a row, driven by Asia Pacific (+4.3%) and North America (+2.7%). China confirmed itself as the first world importer.
Global gas production continued the positive trend with a +3.1% in 2019, despite the decline in Europe (-6.5%), mainly thanks to new LNG plants start-up in US and Australia.
During 2019, US became the second world gas exporter after Russia overtaking Qatar.
Big step forward for LNG that now accounts for 38% of total traded gas, gaining 4% share in one single year (34% in 2018).
However, solar energy continued to dominate renewable capacity expansion with a yearly increase of 20%, doubling the 10.5% growth recorded by wind.
Asia confirmed its leadership in solar capacity expansion, about 60% of the total in 2019 and China maintained its leadership in solar and wind capacity
Source: Ghana News