Do we expect lower petrol prices soon?

Do we expect lower petrol prices soon?

Nope, not talking about the removal of subsidy for RON95. Of course that would push prices up lah. However, there’s this news that the global demand for oil is slowing down. Nope, I seriously do not believe this lower demand for oil is caused by Electric Vehicles (EVs). Not yet anyway until the sale of TVs surpass the world’s total number of internal combustion engine cars. As of now, the percentage is still very low except for probably China. China still needs huge imports of oil for all its industries yeah, so the demand will not go down simply because they have more EVs.

Article in nst.com.my. International Energy Agency said that the global oil demand growth slowed in the second quarter of the year, primarily due to softer construction and industrial activity in China.

It said in its monthly oil report, “Demand is set to rise by less than 1 mbd (million barrels per day) in both 2024 and 2025.”

That growth rate is far slower than last year’s 2.1 mbd increase and slower than pre-pandemic expansion.

The IEA expects global consumption to come in at 103.06 mbd in 2024, up from 102.09 mbd last year and 100.6 mbd in 2019.

Europe will be the only continent to see a drop in overall demand, with the Americas rising only marginally.

Demand will continue to expand apace in the Asia-Pacific region, including in China, according to the IEA. Please do read the full article here: Article in nst.com.my.

See clearly the few sentences in the article?

Europe will see a drop… Americas… marginally… Demand will continue to expand in the Asia-Pacific region including China. These few sentences tell us about what’s happening in the world and why Asia needs to be committed to be more united than ever. Growth is all here… Yet, somehow we have nothing like the European Union kind of organization. Somehow countries continue to be divided with all the influence from the western nations. Sometimes I do wonder if that’s how this part of the world works.

Well, at least ASEAN seems to have a grouping. We just need to make this grouping have a stronger say in everything that happens and it should have benefits to us versus just to one member state and in the end, the other states are all not benefiting. We shall see if somehow this article gets attention from some powerful people. Haha. That’s the truth about how the world works just from the few sentences about oil demand. Happy understanding.

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