29 Mar Is the Oil Demand Outlook Too Modest?
In this week’s Rigzone market commentary, Validere’s Mark Le Dain sat down with Matthew V. Veazey at Rigzone to discuss signals for oil demand and the industries to watch alongside Energy Advisor Phil Kangas and Houston-based Principal Tom McNulty. Keep reading for details.
Many observers feel that the market is underestimating incoming demand. The prognosticators suggest looking to the U.S. rental car market for a more robust outlook on demand, particularly their pricing. Mark Le Dain added that he thinks people will come to terms with the pent-up demand and/or adhere to the structural preference for driving.
Phil Kangas mentioned that we will continue to watch the U.S. travel statistics, which significantly increases the oil demand. More and more travellers are heading to the airports for spring break. These volumes have not been seen since the beginning of the pandemic.
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