Emerging markets ‘key to world oil prices’
Dubai, June 17, 2010
Solid demand growth in China, India and emerging Asian economies, including the Middle East, is the key factor that will shape world oil markets and prices in 2010, experts said.
The top industry professionals were speaking at the Oil & Petrochemicals Market Briefing organised today (June 17) by Dubai Multi Commodities Centre (DMCC), Platts, a division of The McGraw-Hill Companies and Thomson Reuters, a top source of intelligent information for businesses.
The event was held at the Almas Tower in the Jumeirah Lakes Towers (JLT) free zone.
“Growing confidence in a global economic recovery had inspired hopes of rising oil demand in early 2010, but the Eurozone crisis and a strengthening dollar have encouraged continuing volatility in oil prices,” said Malcolm Wall Morris, CEO, DMCC.
“We anticipate that long-term demand growth in China, India, emerging Asian economies and the Middle East region will be the key factors determining the shape of oil markets and prices through this year,” he added.
Wall Morris emphasised the various factors that have impacted oil prices, including currently high inventories of oil products, the excess shipping and refining capacity left over from the 2008-2009 demand dip, and China and India’s increasing prominence as oil products exporters.
Wall Morris also highlighted the relevance of Dubai as the central hub in the GCC oil trading community.
He added that the rapid growth in downstream projects for refineries and product blending and upgrading will continue to enhance the roles of Jebel Ali and Fujairah as major oil trading and storage hubs.
“DMCC’s efforts to establish the Jumeirah Lakes Towers free zone as the principal hub for the commodities trade, including energy companies, continue to bear fruit. JLT is now home to more than 200 energy companies and a total of more than 2,250 companies and over 10,000 residents,” he said.
“This year, DMCC has registered an average of more than 60 new companies per month at JLT, with registrations up more than 40 per cent in the first half of this year compared to the same period in 2009,” Wall Morris concluded.
Quintella Koh, managing editor, Asia Petrochemicals at Platts, spoke about the market outlook for ethylene, propylene and polymers in 2011 with a focus on Asian markets, including China, India, Thailand, Singapore and Vietnam.
The rise of swaps and futures in Asian polymer markets and the Asian Aromatics market outlook were also addressed during her presentation. – TradeArabia News Service