World Oil Demand
OPEC Monthly Oil Market Report – November 2017
, September 2017 oil demand flipped into positive territory to grow by 0.29 tb/d, or 11%,
y-o-y, and stand at 2.81 mb/d. However, the picture remained negative on a cumulative basis, with data from
January – September suggesting a decline of about 28 tb/d, or 1%, y-o-y. Looking at the product categories
shows a mixed performance, with direct crude oil for the purpose of power generation, fuel oil, gasoline and
jet/kerosene recording positive gains, while diesel oil and LPG demand declined. Direct crude for burning
increased by 0.17 mb/d, or 35%, y-o-y, to stand at 0.66 mb/d in September, on the back of expansion
projects of the master gas system that supports industry and utilities, in addition to the low y-o-y base line of
comparison. Moreover, jet/kerosene, gasoline and fuel oil improved at various magnitudes by 16%, 7% and
9% respectively, y-o-y. On the other hand, diesel oil declined by around 14% y-o-y as a result of less
consumption in the transportation and industrial sectors.
Oil demand figures for the month of September 2017 in
showed a slight improvement of 21 tb/d or 3%
y-o-y, despite a mixed performance among product categories. While LPG, gasoline and fuel oil showed
increases, naphtha and jet/kerosene declined.
Kuwait and UAE
Oil requirements also increased in
by 3% and 2%, respectively, y-o-y as growth in the
transportation fuels appeared to be the main source of support in both countries.
Going forward, expectations for the remainder of 2017 appear to be slightly tilted to the downside as the high
level of substitution as well as slower economic indicators weigh on demand growth potential in the region.
In 2018, oil demand growth is expected to gain momentum over the levels experienced in the current year,
mainly as a result of assumed improvements in the economy. On the other hand, geopolitical concerns as
well as a high level of substitution are assumed to contribute negatively to demand growth in 2018.
Middle East oil demand
is expected to rise by 96 tb/d, while oil demand in 2018 is projected to
increase by similar levels to 2017.
Graph 4 - 13: Latin American oil demand,
Graph 4 - 14: Brazilian gasoline demand,
Sources: Joint Organisations Data Initiative, national and
Sources: Agencia Nacional do Petroleo, Gas e Biocombustiveis
of Brazil, Joint Organisations Data Initiative and