Switched On Crude Reality: Oil Demand Growth Falls After Tariffs
Apr 23, 2025
Wayne Tan, Head of Oil Markets Research at BloombergNEF, dives into the impact of recent tariffs on global oil demand. He discusses how U.S. business sentiment has plunged alongside shifting GDP expectations, affecting overall oil consumption. Tan highlights the rapid decrease in China's gasoline demand due to government policies supporting electric vehicles. With OPEC+ looking to increase production amidst these challenges, he sheds light on the complex dynamics shaping the future of oil markets.
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Tariffs Hit Industrial Oil Demand
- Tariffs reduce oil demand by impacting manufacturing and mining sectors that rely on trade.
- This mainly lowers demand for diesel, naphtha, fuel oil, and bunker fuels tied to industrial use.
China's Petrochemical Demand Drops
- China's petrochemical sector demand drops due to reduced imports of US natural gas liquids.
- This further cuts China’s oil demand by about 200,000 barrels per day.
US Oil Demand Risks Rise
- US oil demand could fall 150,000 barrels per day due to slower spending resulting from tariffs.
- Impact hits gasoline and air travel as consumers spend less amid economic uncertainty.