--- title: Natural Gas Heats Up Oil Demand description: The rally in natural gas prices is spilling over into oil as petroleum substitutes for natural gas, especially as northern hemisphere heads into winter. image: https://www.esaienergy.com/hubfs/ESAI%20Energy.jpg --- [![ESAI Energy_Website](https://www.esaienergy.com/hubfs/Imported_Blog_Media/638777a841191e721b31c1f5_ESAI%20Logo_Black-p-500-1.png)](https://www.esaienergy.com/home) - [SOLUTIONS](https://www.esaienergy.com/solutions) - [GLOBAL COMMODITIES](https://www.esaienergy.com/solutions-global) - [CRUDE OIL](https://www.esaienergy.com/solutions-global-crude) - [FUELS](https://www.esaienergy.com/solutions-global-fuels) - [REFINING](https://www.esaienergy.com/solutions-global-refining) - [PETROCHEMICALS](https://www.esaienergy.com/solutions-global-petchem) - [RENEWABLE FUELS & CREDIT MARKETS](https://www.esaienergy.com/solutions-global-renewable-fuels) - [GREEN ENERGY TRENDS](https://www.esaienergy.com/solutions-green-energy-trends) - [REGIONAL MARKETS](https://www.esaienergy.com/solutions-regional) - [CONSULTING](https://www.esaienergy.com/solutions-consulting) - [ABOUT](https://www.esaienergy.com/about) - [TEAM](https://www.esaienergy.com/leadership) - [CAREERS](https://info.esaienergy.com/careers) - [RESOURCES](https://www.esaienergy.com/resources) - [CONTACT](https://info.esaienergy.com/contact) [ESAI CONNECT](https://connect.esai.com) Market Alerts # Natural Gas Heats Up Oil Demand The rally in natural gas prices is spilling over into oil as petroleum substitutes for natural gas, especially as northern hemisphere heads into winter. [ESAI Energy](https://www.esaienergy.com/resources/author/esai-energy) Oct 7, 2021 --- As European and Asian natural gas prices surge in response to higher electricity demand and scarce natural gas supplies, oil is being substituted for natural gas (and to some degree electricity) in different sectors and countries. That includes LPG for refineries, diesel for generators and fuel oil where there is fuel switching capacity at power plants. In addition, we expect slightly higher crude burn, mainly in China and Japan. The following table summarizes ESAI Energy's estimates of additional demand in 000 b/d. For more on the market impact, see ESAI Energy's September ***Global Crude Oil Outlook***. ![](https://uploads-ssl.webflow.com/62ec0d956de78b6e705e1ab2/62ec0d956de78b82405e1d34_MarketAlertTable.PNG) In Europe, the increase in oil use could add about 180,000 b/d to demand through the first quarter of 2022. The biggest impact, however, will be in Asia. Countries such as Japan, Pakistan, and Korea — are shifting to fuel oil. Diesel for generators plays a role here too, particularly in China. Japanese kerosene and the direct burning of crude in Japan and China will be another source of increased demand. In sum, we expect Asian oil demand to be up about 500,000 b/d over the course of the winter. Brazil and Mexico have already seen relatively high fuel oil demand in recent months. Brazil is grappling with reduced hydropower because of a drought and is competing for LNG from abroad. Mexico is rethinking its shift out of fuel oil in the power sector despite environmental concerns. The region could easily see an additional 70,000 b/d of fuel oil and diesel in the coming months. [Market Alerts](https://www.esaienergy.com/resources/tag/market-alerts) ## Similar posts Press ### [Would Biden make gas the next coal?](https://www.esaienergy.com/resources/post/would-biden-make-gas-the-next-coal) ESAI Energy Sep 8, 2023 Market Alerts ### [OPEC+ Deepens Voluntary Cuts](https://www.esaienergy.com/resources/opec-deepens-voluntary-cuts) ESAI Energy Dec 5, 2023 Press ### [Biden 'Hoping' Inflation Cools as Gas Prices Fall Daily for a Month](https://www.esaienergy.com/resources/post/biden-hoping-inflation-cools-as-gas-prices-fall-daily-for-more-than-a-month) ESAI Energy Sep 8, 2023 [![ESAI Energy_Website (2)](https://www.esaienergy.com/hubfs/Graphics/ESAI%20Logo_White.png)](https://www.esaienergy.com/home) 300 Ballardvale Street, Suite 114 Andover, Massachusetts  01810 +1.978.482.0900 ### ABOUT - [TEAM](https://www.esaienergy.com/leadership) - [CAREERS](https://info.esaienergy.com/careers) - [CONTACT](https://info.esaienergy.com/contact) - [CONNECT](https://connect.esai.com/) - [PRIVACY POLICY](https://www.esaienergy.com/privacy-policy) - [PRIVACY RIGHTS REQUEST FORM](https://www.esaienergy.com/privacy-rights-request-form) ### SOLUTIONS - [GLOBAL COMMODITIES](https://www.esaienergy.com/solutions-global) - [REGIONAL MARKETS](https://www.esaienergy.com/solutions-regional) - [DATA PRODUCTS](https://www.esaienergy.com/solutions-data) - [CONSULTING SERVICES](https://www.esaienergy.com/solutions-consulting) Copyright © 2026 ESAI Energy LLC. All rights reserved. ⎪ [Privacy Policy](https://www.esaienergy.com/privacy-policy) [Powered by Atlas - a B2B SaaS HubSpot theme](https://www.kalungi.com/atlas-hubspot-theme-for-b2b-saas-software) ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "ESAI Energy", "url" : "https://www.esaienergy.com/resources/author/esai-energy" }, "dateModified" : "2023-09-20T14:52:19.990Z", "datePublished" : "2021-10-07T14:52:00.000Z", "headline" : "Natural Gas Heats Up Oil Demand", "image" : [ "https://www.esaienergy.com/hubfs/ESAI%20Energy.jpg" ], "mainEntityOfPage" : { "@id" : "https://www.esaienergy.com/resources/post/market-alert-natural-gas-heats-up-oil-demand", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://www.esaienergy.com/hubfs/Marketing%202022/Graphics/ESAI%20Logo_Black.png" }, "name" : "ESAI Energy" } } ```