Andrii Pochkai’s Post

The Rising Petrol Prices: A Global Challenge The world is facing a critical issue: escalating petrol prices. This surge has a ripple effect, causing raw material costs to skyrocket. Businesses, especially those relying on petroleum-based inputs, are hit hard. The Ripple Effect of Rising Petrol Prices The recent petrol price hike has sent shockwaves across industries. This leads to: Higher production costs, affecting manufacturing, transportation, and logistics. Supply chain disruptions, impacting delivery times and product availability. Inflationary pressures, as businesses pass increased costs to consumers. Geopolitical Factors at Play Geopolitical tensions significantly contribute to petrol price volatility. Key factors include: Imbalance in global demand and supply, driven by OPEC's production decisions and rising demand from emerging markets. Conflict and instability in oil-producing regions, disrupting supply lines. Economic sanctions, tariffs, and trade agreements impacting oil exports. Impact on Businesses and Industries Rising petrol prices and geopolitical uncertainty affect various sectors: Manufacturing faces increased costs for raw materials like plastics, chemicals, and textiles. Agriculture sees higher costs for fertilizers, pesticides, and transportation. Logistics and Transportation encounter increased fuel costs. Conclusion As the world navigates these challenges, businesses must adapt. But how can organizations offset these costs? Share your insights! The Future Ahead Will alternative energy sources and sustainable practices break the cycle of petrol price volatility? #economics #investment #business #finance

Oil prices decline amidst expectations of a lower global demand outlook and supply glut predictions. While the Middle East tensions persist, China and the U.S. demand outlook remain bleak due to weak economic data. https://lnkd.in/ezw4aFra #oilprices

Oil Prices Surge Over $1 as Investors Eye China’s Economic Growth and Fuel Demand in 2025 Oil prices finished up by more than one dollar a barrel on Thursday as investors returned for the first trading day of 2025. They did so with an optimistic eye on China’s economy and fuel demand, following President Xi Jinping’s vow to promote growth. Rising gasoline and distillate stocks in the United States put pressure […] <p>The post Oil Prices Surge Over $1 as Investors Eye China’s Economic Growth and Fuel Demand in 2025 first appeared on CTN News-Chiang Rai Times.</p>

Oil prices decline amidst expectations of a lower global demand outlook and supply glut predictions. While the Middle East tensions persist, China and the U.S. demand outlook remain bleak due to weak economic data. https://lnkd.in/ezw4aFra #oilprices

"However, the risk for OPEC+ is that world demand growth disappoints amid ongoing tighter monetary policy to combat sticky inflation, continuing geopolitical conflicts and uncertainty surrounding the U.S. presidential election in November." https://lnkd.in/eNMj7D6Z If world oil demand is not increasing as we were told is there anything else that could perhaps have an impact? Because is there anyone who really believes that US consumers are not buying as much gasoline because they are uncertain about the presidential election? Meanwhile, about that eternal optimism of the OPEC mind. Back in the US the facts are meddlesome. “Rising inventories are an indication that demand may be weaker than assumed on paper,” he said. Paper demand isn't panning out. Imagine that. Or perhaps people are reading the wrong papers. https://lnkd.in/eK5NNWs4

The chemical market may fluctuate downwards on the whole. Crude oil prices may see some downward corrections in April due to strong US dollar and the mediocre implementation of OPEC+ output cuts. Although the demand for chemicals is recovering slowly, the supply of most feedstock is stable, and the inventory is at a relatively high level, so the overall fundamentals are still relatively weak. International crude oil prices rebounded, and the expectation of Fed’s interest rate cut in June weakened. International crude oil prices continued to rally, with Brent prices further rebounding to $84/bbl. Affected by geopolitical factors, the possibility of crude oil prices fluctuating upwards has increased. The US employment data performed better, inflation showed signs of further heating up, and interest rate cut expectations continued to be “suppressed”. The manufacturing prosperity of the world’s major developed countries was not good. China’s economy has shown signs of improvement, and the domestic chemical market operation environment has slowly recovered. In March 2024, China’s manufacturing PMI was 50.8%, up 1.7 percentage points M-O-M. The PMI in March stood on the threshold, and the data performance exceeded expectations. From the perspective of enterprise size, the pressure faced by small and medium-sized enterprises was still relatively large. From the perspective of industry, the production index recorded 52.2%, which played a larger role in driving the manufacturing PMI. In terms of industry, 15 of the 21 industries surveyed were in expansion territory, an increase of 10 from February. The restoration of the construction industry is weak, and high-end and intelligent new quality productivity is playing an increasingly important role. Overall, there are signs of improvement in the Chinese economy.

Sensex Today | Stock Market LIVE Updates: Oil prices steady as investors await inflation data, OPEC+ meeting In early Asian trading on Tuesday, oil prices remained stable as investors awaited inflation data to evaluate future U.S. monetary policy. Additionally, market focus was on the upcoming OPEC+ meeting on June 2 for decisions regarding production policies.

Factors affecting oil prices. Positive Factors - High Demand: Global oil demand is at a record high due to the economic recovery following the COVID-19 pandemic. This has driven oil prices up despite the broader economic downturn. - Production Cuts by OPEC+: The decision by OPEC+ to cut production to limit supply on the market has helped sustain and even push oil prices higher. This move has balanced supply and demand, leading to an increase in oil prices. - Geopolitical Tensions: The ongoing tensions between Russia and Ukraine have raised concerns about potential disruptions in oil supplies from Russia, one of the world's largest oil exporters. This instability has put upward pressure on oil prices. Negative Factors - Risk of Economic Recession: Although current oil demand is high, the risk of a global economic recession could decrease future oil consumption. If the global economy experiences a significant downturn, this could lead to a long-term decrease in oil prices. - Inflation and High Interest Rates: Rising oil prices contribute to inflation, affecting consumer purchasing power and production costs. This forces central banks to maintain or increase interest rates, potentially leading to an economic recession and reduced oil demand. - Increasing Crude Oil Stocks in the US: Despite the global production constraints, crude oil inventories in the US have risen in recent weeks. This could alleviate some of the upward pressure on oil prices if US supply continues to grow. In summary, yesterday's increase in oil prices was due to a combination of positive and negative factors. High demand and production cuts by OPEC+ were the main drivers, while the risk of economic recession and inflation are negative factors that could impact future prices. #Vmex #DauTuHangHoa #HangHoaPhaiSinh

According to a recent Reuters news report, China's demand for oil products peaked in 2023. China's growing appetite for oil has been a primary driver of global crude consumption for years. However, the projected decrease of 1.1% annually between 2023 and 2025, with an acceleration in subsequent years, suggests a structural change rather than a temporary fluctuation. This decline is not a short-term phenomenon but part of a long-term trend. Forecasts indicate an accelerating decline in demand: 2.7% annually from 2025 to 2030 and 3.2% annually from 2030 to 2035. This pattern suggests that China's shift from oil products is gaining momentum, potentially creating a snowball effect in the global oil market. Two main factors are driving this decline: 1. The growing adoption of electric vehicles (EVs): This reflects China's push towards sustainable transportation and could signal a broader global trend towards electrification of transport. 2. Slowing economic growth post-COVID: While this factor might be more temporary, it's significant enough to impact oil demand projections and may indicate a broader economic restructuring in China. Reduced Chinese demand is already affecting global oil consumption and prices. This is evidenced by OPEC+'s recent decision to stall planned production increases, which directly attributes this to reduced Chinese demand. Note that the current price of Brent crude, $71.62 per barrel (as of September 10, 2024, 7:20 a.m., GMT+1), is relatively low, possibly reflecting the market's reaction to these changing dynamics. #energy #oilmarket #china

Global demand forecasts are uncertain due to significant variations in estimates from respected analysts at OPEC and the IEA. OPEC estimates global demand growth at 2.15 million bpd in the first half of 2024, while the IEA’s estimate is significantly lower at 735,000 bpd.