World Oil Demand
OPEC Monthly Oil Market Report – October 2017
Graph 4 - 1: OECD Americas oil demand,
Graph 4 - 2: US gasoline demand,
Following bullish oil demand growth during May and June 2017, the latest available monthly data implies
US oil demand
growth for July 2017 at 0.26 mb/d or 1.3% y-o-y. Distillates overwhelmingly account for most
of the growth in oil requirements, supported by the continued expansion of industrial activities, as well as
LPG intended for the petrochemical industry. Gasoline, jet/kerosene and naphtha demand remained broadly
flat compared to the same month in 2016, while residual fuel oil requirements fell sharply y-o-y as a result of
The surprisingly flat gasoline demand in July 2017 correlated with slightly declining car sales and a only mild
growth in mileage driven. Nevertheless, gasoline demand is expected to return to growth, constituting one of
the main drivers behind US oil demand growth for the remainder of 2017 and 2018. These expectations are
in line with an expanding US vehicle market, particularly for larger vehicles.
Seven months into 2017, US oil demand is higher by around 0.2 mb/d as compared to the same period last
year. The first seven months of 2017 have seen growing demand for all the main petroleum categories with
the exception of gasoline, which remained flat y-o-y. Growth was particularly strong for LPG, naphtha,
jet/kerosene and distillates requirements. August 2017 figures, which are based on preliminary weekly data,
show an increase of around 2.1% y-o-y, with the continuing rise in LPG, naphtha, distillates and jet/kerosene
requirements being partly offset by disappointing gasoline demand. September 2017 preliminary data
indicated another solid month in US oil demand for the main petroleum product categories, with distillates,
gasoline and jet/kerosene being the leading products in the last month of the traditional summer holiday
season. As a result of these factors, US oil demand is projected to remain strong throughout the remainder
of 2017, with industrial and – to a lesser extent – transportation fuels, dominating the implied growth share.
The US is projected to remain the main contributor to anticipated OECD oil demand growth during 2018.
Sources: National, Joint Organisations Data Initiative and
Source: US Energy Information Administration.