All articles tagged with #demand growth
Micron Technology's stock has surged over 238% in 2026 due to improved memory chip prices and sustained demand, with the company increasing its capital expenditure forecast to $20 billion, indicating confidence in the ongoing demand cycle for memory products across various sectors.
OPEC+ extended its oil production cuts through 2025, but oil prices dropped sharply due to the possibility of winding down cuts if market conditions improve. Traders reacted negatively, doubting OPEC's demand growth projections and influenced by lower U.S. gasoline prices. This leaves OPEC+ with limited options but to maintain cuts and hope for stronger demand.
Super Micro Computer's stock rallied by as much as 7.2% on Wednesday morning, driven by bullish coverage from a Wall Street analyst who initiated coverage with a buy rating and a Street-high price target of $1,350 per share, citing the company's leading position in providing computer and server solutions for generative AI and GPU-based systems for deep learning and high-performance computing. With accelerating demand in the AI server market, the stock, which has already seen significant growth, remains a buy despite its affordable valuation.
Kinder Morgan maintains a positive outlook on natural gas demand, citing increased demand from LNG export facilities and exports to Mexico. Despite weakness in its natural gas pipeline operations, the company sees a bright future for U.S. natural gas and anticipates new projects driven by rising demand. With a significant project backlog associated with natural gas, Kinder Morgan aims to expand its capacity and bring more natural gas supply into the southeast market.
The International Energy Agency (IEA) has indicated a "substantial surplus" of oil for this year due to a slowdown in demand growth, reflecting concerns about the impact of the Omicron variant on the global economy. This surplus is expected to put pressure on the energy market and could lead to challenges for oil-producing nations.
Goldman Sachs has raised its 12-month ahead forecast for Brent Crude oil prices to $100 per barrel, citing stronger inventory draws due to extended OPEC+ cuts and global demand growth. The bank believes that lower OPEC oil supply and rising demand will outweigh the increase in U.S. oil production. While Goldman Sachs does not expect a sustained period of Brent holding above $105 next year, it also does not anticipate prices trading below $80 for an extended period.
The International Energy Agency (IEA) stated that the extended oil output cuts by OPEC+ members, Saudi Arabia and Russia, until the end of 2023 will result in a significant market deficit in the fourth quarter. Despite concerns about economic recovery and high interest rates, the IEA remains optimistic about Chinese oil demand. However, the lack of cuts at the start of next year could lead to a surplus, with stocks at uncomfortably low levels, increasing the risk of volatility. Forecasts for global demand and supply vary among different organizations, highlighting the challenges of accurate forecasting in the oil market.
The International Energy Agency (IEA) predicts that oil prices could rise further this year due to OPEC+ supply cuts and rising global demand, potentially leading to inventory draws in the third and fourth quarters. However, the IEA also forecasts a sharp slowdown in demand growth for 2024, citing lackluster macroeconomic conditions, a post-pandemic recovery losing momentum, and the increasing adoption of electric vehicles. The IEA's demand growth forecast for 2024 is 150,000 bpd lower than last month's estimate and differs from OPEC's more optimistic projection. The IEA expects demand to expand by 2.2 million bpd in 2023, while OPEC sees a rise of 2.44 million bpd.
Oil prices fell by 1% due to forecasts of slower oil demand growth in China and disappointment with the size of cuts in China's key lending rates. The hawkish remarks from U.S. Federal Reserve officials and a strengthening of the U.S. dollar also contributed to the decline. China's retail and factory sectors were struggling to sustain momentum from earlier this year, and crude demand will grow less than previously expected due to strong interest in electric vehicles. Iran's crude exports and oil output have hit new highs this year despite U.S. sanctions, while Russia is set to increase seaborne diesel and gasoil exports this month, outweighing cuts by OPEC and allies.
Energy experts have become increasingly polarized in their predictions for oil demand growth in 2023, with some agencies more bullish than others. Despite this, speculative traders have been increasingly bearish, leading to multi-year lows in oil prices. However, analysts believe that the excessive bearishness is overdone relative to underlying news flow and fundamental data, with global oil consumption on track to rise and inventories gradually tightening. Natural gas prices are also expected to increase in the latter half of the year as Europe goes on another buying spree.
Oil prices fell to their lowest level in three weeks due to concerns about weakening demand growth in the second half of this year, particularly in the US, the largest consumer of oil in the world, amid higher interest rates. The fall in crude prices is also a result of the likelihood of more monetary tightening by the Fed, which can help the strengthening greenback. Additionally, flows from northern Iraq via Turkey remain halted, keeping around 450,000 barrels a day from the market.