KUALA LUMPUR, July 30 (Bernama) -- Bursa Malaysia's key index closed at an intraday high today, supported by continued buying interest even as renewed geopolitical tensions and a weaker overnight lead from Wall Street following the US Federal Reserve's (Fed) decision to stand pat on interest rates weighed on broader sentiment. The Fed has decided to hold rates steady for the fifth consecutive meeting, with the Federal Funds Rate unchanged between 3.50 per cent and 3.75 per cent. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.84 points to 1,720.40 from yesterday’s close of 1,715.56. The benchmark index, which opened 1.14 points lower at 1,714.42, hit its lowest level of 1,710.69 in early trade before gaining momentum for the rest of the day. However, the broader market was negative with losers outpacing gainers 581 to 411, while 612 counters were unchanged, 1,173 untraded, and 87 suspended. Turnover declined to 2.49 billion units valued at RM2.25 billion from ...
China, the world’s largest oil importer, is projected to hit its oil consumption peak by 2027, driven by the shift to electric vehicles (EVs) and liquefied natural gas (LNG)-powered trucks, according to Sinopec, Asia's largest refiner.
Key Highlights
Oil Demand Peaks
- 2027 Peak: Oil consumption will plateau at 800 million metric tonnes (~16 million barrels per day).
- 2024 Outlook: Demand is projected to drop to 750 million tonnes, marking only the second decline in two decades.
Key Factors Behind the Peak
Shift to Cleaner Energy:
- Electric Vehicles:
- Displacing 26 million tonnes of gasoline (~15% of total consumption).
- Gasoline demand set to decline 2.4% to 173 million tonnes by 2025.
- LNG-Fueled Trucks:
- Account for 22% of truck sales in 2024.
- Diesel demand expected to drop 5.5% to 174 million tonnes by 2025.
Sectoral Shifts:
- By 2060, the petrochemical sector will consume 55% of oil, up from 22% in 2024.
Aviation Fuel:
- The only refined product expected to grow in 2025, rising 7% to 45.5 million tonnes.
Geopolitical and Economic Uncertainty
- Trump’s Iran Policy:
- Possible tightened sanctions on Iranian oil exports (~1.5 million barrels/day), most of which are purchased by China.
- Potential reduced geopolitical risks in Ukraine and the Middle East, which could lower oil prices.
Natural Gas Demand Trends
- Peak Consumption Revised Higher:
- Forecast to plateau at 620 billion cubic meters (bcm) between 2035–2040, up from last year’s estimate of 610 bcm by 2040.
- 2025 Projection:
- Natural gas consumption to rise 6.6% to 458 bcm, driven by:
- Increased LNG use in trucking.
- New gas power generation.
- Higher industrial and residential demand.
Carbon Emissions Forecast
- Revised forecast for energy-related carbon emissions to peak between 10.8 billion and 11.12 billion tonnes before 2030 (up from last year’s estimate of 10.1 billion tonnes).
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