This graphic from a recent Morgan Stanley oil sector presentation is enlightening, as it puts the size of the sector into perspective compared to other commodities – at $2.1 trillion the oil sector is 7.5 times larger than the next biggest commodity, iron ore. And crude oil’s importance for the world economy is not going away anytime soon, as it remains a critical component, particularly in transportation.

While EV sales are starting to gather pace in Australia, they are coming off a low base compared with other markets. And in both the US and Europe, emissions legislation has been pushed back out of necessity. For 2024, oil demand is forecast to grow ~1.5 mb/d, underpinned by rising demand for jet fuel and petrochemical feedstock.

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