Are the super-cycle dynamics for oil changing?

Commodities

Angelos Damaskos, investment adviser at Junior Oils Trust, takes a closer look at what has driven demand for oil and whether these trends are set to continue.

Oil demand patterns have changed significantly over the last decade. Historically, the first and the last quarters of the year saw higher demand due to the cold winter period in the developed countries. In 2012, world consumption of oil was higher by almost one million barrels per day in the second and third quarters. The reason for this is primarily due to China, India, Saudi Arabia and Brazil – the world’s fastest growing economies over the past decade – burning more oil during the warmer seasons, among other things to provide electricity for air-conditioning. It is becoming clear that...