Business

IEA Sees Global Oil Demand Hitting A Record High In 2023

Published

2 years ago

January 18, 2023

China’s reopening is set to drive global oil demand to a record high of 101.7 million barrels per day (bpd) this year, up by 1.9 million bpd from 2022, the International Energy Agency (IEA) said on Wednesday, raising its demand growth estimate for 2023 by 200,000 bpd from 1.7 million bpd growth expected in December.

Almost half of the oil demand growth this year will come from China after Beijing lifted its Covid restrictions, the IEA said in its closely-watched Oil Market Report (OMR) for January.

At the same time, world oil supply growth in 2023 is set to slow to 1 million bpd, following last year’s OPEC+ led growth of 4.7 million bpd.

“An overall non-OPEC+ rise of 1.9 mb/d will be tempered by an OPEC+ drop of 870 kb/d due to expected declines in Russia,” the IEA said in the report.

As a result, market balances are set to tighten as this year progresses, the agency noted.

“This year could see oil demand rise by 1.9 mb/d to reach 101.7 mb/d, the highest ever, tightening the balances as Russian supply slows under the full impact of sanctions. China will drive nearly half this global demand growth even as the shape and speed of its reopening remains uncertain,” the IEA said.

Russia and China will be the two wild cards in the market this year, it added.

Russian oil exports dropped by just 200,000 bpd in December despite the EU embargo and the G7 price cap. But the record price discounts on Russian benchmark export grades reduced Russia’s oil revenues by $3 billion to $12.6 billion last month – the lowest since February 2021, the agency has estimated.

The EU ban on Russian oil products from February 5 could soon mean that “the well-supplied oil balance at the start of 2023 could quickly tighten however as western sanctions impact Russian exports.”

The IEA’s upbeat outlook on demand this year sent oil further rallying as prices extended Tuesday’s gains into early trade on Wednesday. As of 6:15 a.m. ET, WTI Crude was up by 1.83% at $81.68. Brent Crude topped the $87 mark to trade at $87.29, up by 1.49% on the day.

By Tsvetana Paraskova for Oilprice.com

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews.

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Business

Restaurant owner MTY Food sees profit, revenue slide in Q3

Published

2 days ago

October 11, 2024

Anne Joseph

MTY Food Group Inc. says its profit and revenue both slid in its most recent quarter.

The restaurant franchisor and operator says its net income attributable to owners totalled $34.9 million in its third quarter, compared with $38.9 million a year earlier.

The results for the period ended Aug. 31 amounted to $1.46 per diluted share, down from $1.59 per diluted share a year prior.

The company behind 90 brands including Manchu Wok and Mr. Sub attributed the fall to impairment charges on property, plants and equipment along with intangibles assets.

Its revenue decreased slightly to $292.8 million in the quarter from $298 million a year ago.

While CEO Eric Lefebvre saw the quarter as a sign that the company’s ongoing restructuring is starting to bear fruits, he said the business was also hampered by significant delays in construction and permitting that resulted in fewer locations opening.

This report by The Canadian Press was first published Oct. 11, 2024.

Companies in this story: (TSX:MTY)

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Business

Montreal’s Taiga Motors sells to British electric boat entrepreneur Stuart Wilkinson

Published

2 days ago

October 11, 2024

Anne Joseph

Taiga Motors Corp. says the Superior Court of Québec has approved its sale to a British electric boat entrepreneur.

The Montreal-based maker of snowmobiles and watercraft says it will be purchased by Stewart Wilkinson.

Wilkinson’s family office is behind marine electrification brands that include Vita, Evoy, and Aqua superPower.

Wilkinson and Taiga did not reveal the terms or value of the deal but say Wilkinson will assume Taiga’s debt to Export Development Canada and has committed to funding Taiga’s business plan.

The companies say the transaction will allow them to achieve greater economies of scale and deliver high-performance products at compelling prices to accelerate the electric transition.

The sale comes months after Taiga sought bankruptcy protection under the Companies’ Creditors Arrangement Act to cope with a cash crunch.

This report by The Canadian Press was first published Oct. 11, 2024.

Companies in this story: (TSX:TAIG)

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Business

TD fined US$3.09 billion by U.S. regulators

Published

2 days ago

October 10, 2024

Anne Joseph

Toronto-Dominion Bank is facing fines totalling about US$3.09 billion from U.S. regulators in connection with failures of its anti-money laundering safeguards.

The bank also received a cease-and-desist order and non-financial sanctions from the Office of the Comptroller of the Currency that put limits on its growth in the U.S. after it was found that TD had “significant, systemic breakdowns in its transaction monitoring program.”

More coming.

Companies in this story: (TSX:TD)

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