World Oil Demand
OPEC Monthly Oil Market Report – October 2017
Table 4 - 3: US oil demand, tb/d
, August 2017 was marked by a large decrease in oil demand, affecting all main petroleum product
categories, with the exception of naphtha and jet/kerosene. LPG, gasoline, residual fuel oil and diesel
requirements fell y-o-y. Consequently, Mexican oil demand in August 2017 decreased by a considerable
4.8% y-o-y. 2017 Mexican oil demand is expected to contract y-o-y. 2018 oil demand is projected to grow
slightly as a result of expected positive economic growth.
oil requirements rose solidly y-o-y in July 2017, with all main product categories, except LPG
being positive. Overall, projections for Canadian oil demand in 2017 continue to show slight growth
compared to 2016. Depending on the overall performance of the economy, Canadian oil requirements in
2018 are projected to again slightly exceed those of 2017.
OECD Americas oil demand
is projected to grow by 0.26 mb/d compared to a year earlier. In
2018, OECD Americas oil demand is forecast to grow by 0.20 mb/d over the current year.
European oil demand
continued on a strong path during the first seven months of 2017. In relation to recent
historical patterns, the increase was substantial and encompassed several factors: strongly improving
economies in the large majority of countries in the region, positive oil price-related effects, as well as the
impact of cold weather earlier in this year. There are certainly some concerns continuing to pose
uncertainties for future oil requirements, most of them region-specific: high taxation schemes on oil usage
and economic concerns in relation to some of the countries. Nevertheless, the expected oil demand in the
region for 2017 and 2018 is dominated by positive factors, primarily with regard to industrial and road
transportation fuels, similar to the trend in the US.
Data for the first seven months of 2017 showed European oil demand increasing by approximately 0.28 mb/d
y-o-y, with road transportation and industrial fuels – notably diesel – accounting for the bulk of the increases.
These developments are supported by the positive momentum in auto sales, and the solid expansions in all
major auto markets. The general expectations for the region’s oil demand during 2017 and 2018 have
improved since last month’s projections but are still coupled with uncertainties dependent on the region’s
economic development. High taxation polices on oil use and fuel substitution still remain the main factors that
could curb oil demand despite economic growth, whereas the low historical baseline and low fuel price
environment are the principal positive ones.
Sources: US Energy Information Administration and OPEC Secretariat.