Latest news with #supplyanddemand
News.com.au
a day ago
- Business
- News.com.au
PM pushes Australian ore in China as steelmakers stare down decarbonisation
In a display of classic supply and demand salesmanship, Anthony Albanese will flaunt Australian iron ore at a roundtable with China's biggest steelmakers on Monday. The country's behemoth construction industry has slowed in recent years, fuelling fears a downturn in steel production could smash demand for Australian iron ore and threaten jobs as well as the national bottom-line. Both countries have also committed to cleaning up big polluting industries in line with their broader climate goals. With Australia the world's largest iron ore producer and China Australia's top customer, the Prime Minister will make the case for closer co-operation. 'I'm pleased to be here for an important discussion between Australian iron ore miners and Chinese steelmakers,' Mr Albanese will tell the roundtable, according to speech extracts seen by NewsWire. 'Australia and China's iron ore and steel sector partnership has contributed to both countries' economic development for decades. 'Australian miners are reliable and stable suppliers of iron ore, responsible for almost 60 per cent of China's iron ore imports. 'That iron ore goes into Chinese steel production which accounts for over 50 per cent of global supply.' BHP, Hancock, Rio Tinto and Fortescue will all be seated at the roundtable, with Twiggy Forrest among the executives showing up. Nearly 145,000 Australians work in the metal ore mining industry, according to the latest official figures. In 2024, iron ore exports alone were worth north of $150bn. But it is a dirty business in a world scrambling for greener options. 'Steelmaking value chains are also responsible for 7 to 9 per cent of global emissions,' Mr Albanese will say. 'Achieving the goals of the Paris Agreement will require the decarbonising of steel value chains, presenting an opportunity for Australia and China to progress our long-term economic interests.' Mr Albanese will raise the 'challenges' of steel decarbonisation, but aim to reassure both the Australian mining chiefs and the Chinese steel bosses that Australia is willing to front up the cash investments and tweak policies. 'What we need are enabling policy environments, extensive investments in research to develop new technologies, and collaboration across academia, industry and government,' he will say. 'Australia and China each have major stakes in how the decarbonisation efforts develop. 'As both countries co-operate to advance decarbonisation, we also need to work together to address global excess steel capacity. 'It is in both countries' interests to ensure a sustainable and market-driven global steel sector.' Later on Monday, Mr Albanese will have a lunch with Australian and Chinese business leaders. Both roundtables are key parts of his six-day diplomatic and big business blitz in China. Against a backdrop of an increasingly militaristic regional rivalry with Beijing, Mr Albanese has been keen to reframe the bilateral relationship in friendlier terms, such as tariff-free trade.
Malay Mail
3 days ago
- Business
- Malay Mail
IEA warns global oil supplies stretched despite forecast surplus
VIENNA, July 11 — The world oil market may be tighter than it appears despite a supply and demand balance pointing to a surplus, the International Energy Agency (IEA) said today, as refineries ramp up processing to meet summer travel demand. The IEA, which advises industrialised countries, expects global supply to rise by 2.1 million barrels per day this year, up 300,000 bpd from the previous forecast. World demand will rise by just 700,000 bpd, it said, implying a sizeable surplus. Despite making those changes, the IEA said rising refinery processing rates to meet summer travel and power-generation demand were tightening the market and the latest, accelerated supply hike from OPEC+ tomorrow had not had much effect. 'The decision by OPEC+ to further accelerate the unwinding of production cuts failed to move markets in a meaningful way given tighter fundamentals,' the agency said in a monthly report. 'Price indicators also point to a tighter physical oil market than suggested by the hefty surplus in our balances.' The comments strike a similar tone to the message earlier this week from ministers and executives of OPEC nations and bosses of Western oil majors. The output increases are not leading to higher inventories, which shows markets are thirsty for more oil, they said. On Monday, when traders reacted to OPEC+'s decision, oil rose nearly 2 per cent towards US$70 a barrel, despite the larger than expected output hike and concerns about the impact of US tariffs. It was trading near US$69 today. As examples of price indicators suggesting a tighter market, the IEA cited strong refining margins and the premium at which oil for immediate delivery is trading to later supply, a structure known as backwardation. 'Prompt time spreads are in steep backwardation and refinery margins remain healthy despite implied stock builds,' it said. Summer demand boost Oil demand typically rises in the Northern Hemisphere summer as people fly and drive more on holidays. Given rising seasonal demand, refinery crude processing rates will increase by 3.7 million bpd from May to August to meet Northern Hemisphere travel demand, the IEA said. At the same time, a doubling in crude burning in refineries for power generation, typically to meet air conditioning needs, to around 900,000 bpd will further tighten the market, it said. Nonetheless, the agency said this year's forecast for global demand growth of 700,000 bpd is the slowest since 2009, excluding 2020 when demand contracted due to the COVID pandemic. The IEA said that, while it may be too early to say US tariffs are slowing demand, the largest declines in recent data were in countries in the 'crosshairs of the tariff turmoil,' citing China, Japan, South Korea, the United States and Mexico. IEA demand forecasts are at the lower end of the industry range, as the agency expects a faster energy transition than some other forecasters. According to OPEC, demand will rise by 1.3 million bpd this year — almost double the IEA figure. Next year, the IEA sees demand growth averaging 720,000 bpd, 20,000 bpd lower than previously thought, with supply growth rising by 1.3 million bpd, also implying a surplus. — Reuters
Malay Mail
3 days ago
- Business
- Malay Mail
IEA warns world oil market may be tighter than it looks
VIENNA, July 11 — The world oil market may be tighter than it appears despite a supply and demand balance pointing to a surplus, the International Energy Agency (IEA) said today, as refineries ramp up processing to meet summer travel demand. The IEA, which advises industrialised countries, expects global supply to rise by 2.1 million barrels per day this year, up 300,000 bpd from the previous forecast. World demand will rise by just 700,000 bpd, it said, implying a sizeable surplus. Despite making those changes, the IEA said rising refinery processing rates to meet summer travel and power-generation demand were tightening the market and the latest, accelerated supply hike from OPEC+ tomorrow had not had much effect. 'The decision by OPEC+ to further accelerate the unwinding of production cuts failed to move markets in a meaningful way given tighter fundamentals,' the agency said in a monthly report. 'Price indicators also point to a tighter physical oil market than suggested by the hefty surplus in our balances.' The comments strike a similar tone to the message earlier this week from ministers and executives of OPEC nations and bosses of Western oil majors. The output increases are not leading to higher inventories, which shows markets are thirsty for more oil, they said. On Monday, when traders reacted to OPEC+'s decision, oil rose nearly 2 per cent towards US$70 a barrel, despite the larger than expected output hike and concerns about the impact of US tariffs. It was trading near US$69 today. As examples of price indicators suggesting a tighter market, the IEA cited strong refining margins and the premium at which oil for immediate delivery is trading to later supply, a structure known as backwardation. 'Prompt time spreads are in steep backwardation and refinery margins remain healthy despite implied stock builds,' it said. Summer demand boost Oil demand typically rises in the Northern Hemisphere summer as people fly and drive more on holidays. Given rising seasonal demand, refinery crude processing rates will increase by 3.7 million bpd from May to August to meet Northern Hemisphere travel demand, the IEA said. At the same time, a doubling in crude burning in refineries for power generation, typically to meet air conditioning needs, to around 900,000 bpd will further tighten the market, it said. Nonetheless, the agency said this year's forecast for global demand growth of 700,000 bpd is the slowest since 2009, excluding 2020 when demand contracted due to the COVID pandemic. The IEA said that, while it may be too early to say US tariffs are slowing demand, the largest declines in recent data were in countries in the 'crosshairs of the tariff turmoil,' citing China, Japan, South Korea, the United States and Mexico. IEA demand forecasts are at the lower end of the industry range, as the agency expects a faster energy transition than some other forecasters. According to OPEC, demand will rise by 1.3 million bpd this year — almost double the IEA figure. Next year, the IEA sees demand growth averaging 720,000 bpd, 20,000 bpd lower than previously thought, with supply growth rising by 1.3 million bpd, also implying a surplus. — Reuters
Zawya
3 days ago
- Business
- Zawya
World oil market may be tighter than it looks, IEA says
The world oil market may be tighter than it appears despite a supply and demand balance pointing to a surplus, the International Energy Agency said on Friday, as refineries ramp up processing to meet summer travel demand. The IEA, which advises industrialised countries, expects global supply to rise by 2.1 million barrels per day this year, up 300,000 bpd from the previous forecast. World demand will rise by just 700,000 bpd, it said, implying a sizeable surplus. Despite making those changes, the IEA said rising refinery processing rates to meet summer travel and power-generation demand were tightening the market and the latest, accelerated supply hike from OPEC+ on Saturday had not had much effect. "The decision by OPEC+ to further accelerate the unwinding of production cuts failed to move markets in a meaningful way given tighter fundamentals," the agency said in a monthly report. "Price indicators also point to a tighter physical oil market than suggested by the hefty surplus in our balances." The comments strike a similar tone to the message earlier this week from ministers and executives of OPEC nations and bosses of Western oil majors. The output increases are not leading to higher inventories, which shows markets are thirsty for more oil, they said. On Monday, when traders reacted to OPEC+'s decision, oil rose nearly 2% towards $70 a barrel, despite the larger than expected output hike and concerns about the impact of U.S. tariffs. It was trading near $69 on Friday. As examples of price indicators suggesting a tighter market, the IEA cited strong refining margins and the premium at which oil for immediate delivery is trading to later supply, a structure known as backwardation. "Prompt time spreads are in steep backwardation and refinery margins remain healthy despite implied stock builds," it said. SUMMER DEMAND BOOST Oil demand typically rises in the Northern Hemisphere summer as people fly and drive more on holidays. Given rising seasonal demand, refinery crude processing rates will increase by 3.7 million bpd from May to August to meet Northern Hemisphere travel demand, the IEA said. At the same time, a doubling in crude burning in refineries for power generation, typically to meet air conditioning needs, to around 900,000 bpd will further tighten the market, it said. Nonetheless, the agency said this year's forecast for global demand growth of 700,000 bpd is the slowest since 2009, excluding 2020 when demand contracted due to the COVID pandemic. The IEA said that, while it may be too early to say U.S. tariffs are slowing demand, the largest declines in recent data were in countries in the "crosshairs of the tariff turmoil," citing China, Japan, South Korea, the United States and Mexico. IEA demand forecasts are at the lower end of the industry range, as the agency expects a faster energy transition than some other forecasters. According to OPEC, demand will rise by 1.3 million bpd this year - almost double the IEA figure. Next year, the IEA sees demand growth averaging 720,000 bpd, 20,000 bpd lower than previously thought, with supply growth rising by 1.3 million bpd, also implying a surplus. (Reporting by Alex Lawler. Editing by Joe Bavier and Mark Potter)
Arab News
3 days ago
- Business
- Arab News
World oil market may be tighter than it looks, IEA says
VIENNA: The world oil market may be tighter than it appears despite a supply and demand balance pointing to a surplus, the International Energy Agency said on Friday, as refineries ramp up processing to meet summer travel demand. The IEA, which advises industrialized countries, expects global supply to rise by 2.1 million barrels per day this year, up 300,000 bpd from the previous forecast. World demand will rise by just 700,000 bpd, it said, implying a sizeable surplus. Despite making those changes, the IEA said that rising refinery processing rates aimed at meeting summer travel and power-generation demand were tightening the market and the latest supply hike from OPEC+ announced on Saturday had not had much effect. 'The decision by OPEC+ to further accelerate the unwinding of production cuts failed to move markets in a meaningful way given tighter fundamentals,' the agency said in a monthly report. 'Price indicators also point to a tighter physical oil market than suggested by the hefty surplus in our balances.' Earlier this week, ministers and executives from OPEC nations and bosses of Western oil majors said the output increases are not leading to higher inventories, showing that markets are thirsty for more oil. Next year, the IEA sees demand growth averaging 720,000 bpd, some 20,000 bpd lower than previously thought, with supply growth rising by 1.3 million bpd, also implying a surplus.
