World Oil Demand
OPEC Monthly Oil Market Report – September 2017
, oil demand grew during July, edging up by 35 tb/d, or 1.4%, compared with the same period in
2016. Increase in oil demand growth was led by gasoline, which rose by around 53 tb/d, or 8%,
y-o-y. Demand was stimulated by cheaper gasoline prices compared with ethanol, encouraging drivers to
use gasoline in their flex-fuel engine vehicles. On the other hand, ethanol demand has been declining since
the beginning of 2016, as curtailed production led to higher ethanol prices, hence limiting demand. Ethanol
demand declined by around 57 tb/d in July, while diesel demand increased in the same month by around
25 tb/d, or around 3% y-o-y. This increase is the result of a slow improvement in the overall economy, as
improvement in various sectors such as transportation, agriculture, construction and industry all contributed
positively. Fuel oil demand increased marginally by around 2 tb/d y-o-y to satisfy additional demand in the
Table 4 - 6: Brazilian oil demand*, tb/d
, the latest available data for the month of June shows declining oil demand requirements; oil
demand edged down by 26 tb/d, or by 3%, y-o-y. While transportation fuels have recorded some gains led by
jet/kero and gasoline, those were outweighed by declines in petrochemical feedstock and power generation
fuels, namely LPG, diesel oil and fuel oil.
2017 and 2018 projections
for oil demand growth in
are similar to last
month’s projections, and account for general improvement in the overall regional economy. Brazil is
projected to by the main contributor to growth, led by transportation fuels.
Latin American oil demand
is expected to rise by 50 tb/d in 2017 and gain some momentum in 2018,
increasing by around 90 tb/d.
Sources: JODI, Agencia Nacional do Petroleo, Gas Natural e Biocombustiveis and OPEC Secretariat.
Note: * = Inland deliveries.