World Oil Demand
OPEC Monthly Oil Market Report – August 2017
The overall forecast for Indian oil demand in 2017 and 2018 remains unchanged, compared to last month’s
projections. The expectations for strong economic growth and the large potential for oil demand in the
country are skewed to the upside. Some downside risks relate to a possible reduction in subsidies and fuel
, increasing demand for road transportation fuels, notably gasoline and gas diesel oil, as well as
LPG in the residential sector, were partly offset by decreasing demand for residual fuel and jet kerosene. The
overall result is a 0.6% increase in oil demand y-o-y during May 2017. As Indonesian oil demand, particularly
transportation fuels and LPG is substantially connected to domestic retail prices policies, possible additional
reductions in subsidized diesel, gasoline and LPG may curb oil demand in 2017 and 2018.
In Malaysia, May 2017 oil demand witnessed an increase y-o-y, with the majority of petroleum product
categories seeing growth, notably jet kerosene, gas diesel oil and gasoline. This was partly offset by declines
in residual fuel oil and LPG requirements. Oil demand growth in May 2017 was strong for another month in
Hong Kong, with the bulk of additional volumes coming from gas diesel oil and residual fuel oil, mostly driven
by industrial activities and transportation.
, the latest available data imply slightly declining oil demand in May 2017 y-o-y; diesel, gasoline,
and LPG demand grew, but this is offset by declining naphtha and residual fuel oil requirements, largely due
to fuel substitution.
’s oil demand is expected to increase by 0.33 mb/d y-o-y in 2017. For 2018, oil demand is
forecasted to grow solidly by a further 0.34 mb/d.
Graph 4 - 9: Latin America oil demand,
Graph 4 - 10: Brazilian gasoline demand,
, oil demand growth in June 2017 stayed out of negative territory y-o-y, for the second month in a
row. This provides further support to some positive indicators already seen in 1Q17. Gasoline demand grew
firmly and gas diesel oil demand increased marginally y-o-y; gains were partly offset by shrinking residual
fuel oil, jet kerosene and ethanol demand in the industrial and transportation sectors. Expectations for 2017
and 2018 Brazilian oil demand remain unchanged from last month, with expected oil demand growth linked
to the recovery of the country’s economy.
Sources: National, Joint Organisations Data Initiative and
Sources: Agencia Nacional do Petroleo, Gas e Biocombustiveis
of Brazil, Joint Organisations Data Initiative and