Dubai: Solid demand growth in China, India and emerging Asian economies, including the Middle East, are the key factors that will shape world oil markets and prices in 2010, experts said at the Oil and Petrochemicals Market Briefing.
The event was conducted jointly by the Dubai Multi Commodities Centre (DMCC), Platts and Thomson Reuters at the Almas Tower in the Jumeirah Lakes Towers free zone.
Key factors
"Growing confidence in a global economic recovery had inspired hopes of rising oil demand in early 2010, but the euro zone crisis and a strengthening dollar have encouraged continuing volatility in oil prices," said Malcolm Wall Morris, CEO of the 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."
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.
During his speech, Morris also highlighted the relevance of Dubai as the central hub in the GCC oil trading community. He added 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.
JLT is now home to more than 200 energy companies and a total of more than 2,250 companies and over 10,000 residents.
Speaking about the outlook for Asian oil markets, Kate Dourian, Middle East Editor at Platts, spoke about the likelihood of constrained production in the future.
She, however, highlighted the prospects of strong demand due to renewed growth in China and elsewhere in Asia.
