World Oil Demand
OPEC Monthly Oil Market Report – August 2017
The large majority of countries in the region show increasing oil demand y-o-y for the 1H17. Growth in road
transportation fuels are in line with the positive momentum in auto sales, which showed solid increases of
around 5% y-o-y during the 1H17 and with June’s absolute levels approaching those prior to 2007. However,
the general expectations for the region’s oil demand growth during the remainder of 2017 and 2018 are more
conservative than those during the first half of the year. This is mainly due to the high historical baseline and
the risks that traditionally relate to the region’s oil demand structure, such as high taxation polices in oil use
and fuel substitution.
Table 4 - 3: Europe Big 4* oil demand, tb/d
OECD Europe oil demand
is projected to grow by 0.11 mb/d in 2017, while 2018 oil demand will grow
slightly by 0.04 mb/d, compared to 2017.
OECD Asia Pacific
Preliminary data suggest that
Japanese oil demand
shrank slightly y-o-y in June 2017, by almost
0.03 mb/d. This follows continuing declines in each of the five previous months of 2017. However, the picture
was in fact positive for the majority of petroleum product categories. LPG and naphtha requirements saw
gains y-o-y, with strong demand also for jet kerosene and gas diesel oil in the transportation and industrial
sectors. On the flip side, gasoline demand remained stagnant y-o-y, while requirements for residual fuel oil
registered substantial losses, compared to the same month in 2016. Moreover, despite warmer weather the
required volumes for direct use of crude oil and residual fuel oil for electricity generation declined for another
month y-o-y, compared to the historical norm. This was the result of fuel substitution with other primary
Sources: JODI, UK Department of Energy and Climate Change, Unione Petrolifera and OPEC Secretariat.
Note: * Germany, France, Italy and the UK.