After a devastating 2020, Rystad Energy projected demand for oil products in the US to grow by 1.08 million bpd in 2021 to 19.1 million bpd. This projection left politics aside but if President Joe Biden lives up to his promises after his inauguration, we see an upside to US products demand of about 350,000 bpd, as a result of the planned short-term economic stimulus and his infrastructure plan. The expected stimulus package includes financial aid to low-income American families, extended unemployment insurance payments, and billions of dollars in support to state and local governments to avoid layoffs of state employees. Together with a sizeable infrastructure package and an increased likelihood of additional short-term stimulus packages down the road, the Democratic policies create a definite oil products demand upside. “These measures present a very bullish cocktail for US products demand in 2021. This infrastructure spending will certainly stimulate demand […]

Posted in: USA