DOHA: Another day, another dollar (rally in oil prices). The tag-team of dollar weakness and production freeze hopes combine again to rally crude prices higher for yet another day. Hark, here are five things to consider in oil markets today:
Qatar’s economy is looking none too shabby, despite the the oil price drop of the last two years. It is doing better than the rest of the GCC (Gulf Cooperation Council), and this is being reflected through in its demand for products, which has doubled since 2011 – according to JODI.
Qatar is already preparing for the 2020 World Cup, and is into its second year of a $200 billion project to improve its infrastructure. This is boosting economic activity, while a new airport with a growing fleet of planes is boosting jet fuel demand. Qatar’s population is 2.5 million people, and its economy is set to grow by 3.4 percent this year, according to the IMF.
Domestic crude production in Qatar has risen in the last decade, up from around 1.5 million barrels per day in 2010 to over 2mn bpd currently, driven by rising condensate production. This rise in production has helped to offset the rise in demand, with imports edging lower of late.
After weak January, Qatar crude oil loadings this year have averaged just over 1mn bpd through the first seven months of this year, down 12 percent from year ago levels. In terms of the destination of Qatar’s oil, our ClipperData show that Japan has jumped ahead of South Korea this year as the leading recipient, accounting for ~35 percent of total oil and condensate exports, with South Korea accounting for ~30 percent. India is in third place, but gaining ground.
