World Oil Demand
OPEC Monthly Oil Market Report – October 2017
Based on the latest available data, oil demand growth in
was adjusted lower by around
25 tb/d in 2017 despite some upward revisions, for example, in China by around 30 tb/d on average for 2017.
In Other Asia, oil demand growth was adjusted lower by 0.1 mb/d in 3Q17, mainly reflecting slower-than-
expected oil demand development in India as heavy rain reduced transportation fuel demand and
uncertainties around the Goods and Services Tax (GST) programme hindered oil demand growth.
The Middle East was also revised lower, by 50 tb/d in 2Q17, due to slower-than-expected oil demand growth
data in 2Q17 from various countries in the region.
In the FSU, 2018 oil demand growth data was adjusted higher by 15 tb/d mainly to reflect better economic
projections as compared to last month.
In China, the upward revision by 30 tb/d in 3Q17 was due to better than expected demand from the
petrochemical and transportation sectors in the country.
According to the latest data, August 2017
Chinese oil demand
registered growth of around 0.34 mb/d y-o-y
with total demand pegged at 11.5 mb/d. Increasing LPG requirements for the petrochemical industry in
combination with rising jet fuel and gasoline consumption in the transportation sector saw most of the gains.
LPG demand growth exceeded 0.11 mb/d y-o-y with total consumption recording 1.64 mb/d as propane
dehydrogenations capacities (PDH) continue to expand. Chinese PDH capacity is projected to reach
3 million tonnes per year (mt/y) in 2017 with the Dongguan Juzhengyuan (0.9 mt/y), Fujian Meide (0.66 mt/y)
and Jiangsu Haili (0.51 mt/y) projects starting late this year, supporting LPG demand towards the end of the
Graph 4 - 7: Chinese apparent oil demand,
Graph 4 - 8: Chinese diesel oil and gasoline
demand, y-o-y change
Gasoline demand inched up by 62 tb/d y-o-y. Vehicle sales data now suggests healthy gains, most notably in
the Sport Utility Vehicle (SUV) category. According to statistics of
the China Association of Automobile
, in August the sales of passenger cars witnessed an increase of around 4% y-o-y
with SUV sales adding around 18% y-o-y.
Jet/kerosene total consumption is now pegged at 0.71 mb/d, up by 36 tb/d y-o-y, propelled by an uplift in
domestic travel in the country. According to the China Air Transport Association, air passenger travel
increased by more than 6% on average for the first seven months of this year as compared to the same
period last year.
Sources: Argus Global Markets, China OGP (Xinhua News
Agency), Facts Global Energy, JODI, National Bureau of
Statistics of China and OPEC Secretariat.
Sources: Facts Global Energy, China OGP (Xinhua News
Agency), Argus Global Markets, JODI, National Bureau of
Statistics, China and OPEC Secretariat.