Oil’s 2019 Weakness Has Roots in 2018’s Strength
BP’s latest annual statistical review reveals the worrisome signs headline demand numbers masked.
Oil prices are falling on weak demand, which has its roots in last year’s strong demand.
Photographer: David McNew/Getty Images North AmericaOil has a demand problem. You can see it, most obviously, in headline crude oil prices, which slumped again Wednesday morning. You can see it in Asian refining margins and physical premia. You can see it in Saudi Arabia’s efforts to maintain supply cuts, rapidly turning into an oily version of Dylan’s Never Ending Tour.
You can also see it in some historical figures in BP Plc’s Statistical Review of World Energy, the annual data bible that dropped on Tuesday. Looking at numbers for 2018 and prior years might seem superfluous to judging what’s happening in 2019. Moreover, the headline growth figure for 2018 of 1.4 million barrels a day, or 1.5%, is pretty robust. Its fragility lies beneath.