Strong Economy and Supply Concerns Drive Oil Prices to 2022 High
• The stronger-than-expected performance of the US economy has boosted oil prices to their highest level this year.
• Continuous Houthi strikes in the Red Sea and surging product freight rates have added impetus to the bullish cause for oil prices.
• Canada’s $23 billion Trans Mountain Expansion (TMX) pipeline is set to begin line fill by the end of this quarter, with first commercial flows starting from April.
• Freight rates for oil product tankers to Europe hit their highest level since April 2020, up 60% compared to the Suez Canal route.
• Chinese jet fuel demand is expected to surpass pre-pandemic levels over the upcoming Lunar New Year celebrations, hitting 860,000 b/d.