After a counter-seasonal drop in July, global oil demand rebounded in August by 2 million barrels per day (BPD) to reach 99 percent of pre-Covid levels, data from the Joint Organizations Data Initiative (JODI) showed on Monday.
Oil demand growth in August was driven by higher consumption in the United States, China, Japan, Saudi Arabia, and Indonesia, the Riyadh-based International Energy Forum (IEF) said, citing the latest JODI data.
Of note in August was also a 500,000 BPD increase in global crude oil output, with Saudi Arabia’s production rising above 11 million BPD – only the third time the Kingdom has reported output of over 11 million BPD, according to the JODI database which compiles self-reported figures from countries.
In the United States, crude oil production rose by 290,000 bpd in August and is up by 813,000 bpd from year-ago levels, the data showed. Product demand rose by 1.46 million bpd in August, and U.S. crude oil closing stocks dropped by 22.7 million barrels to their second-lowest level recorded in JODI.
The August rebound in global demand follows an estimated 1.1 million bpd drop in July, which was an unusual slump for this time of the year.
Demand for August may have rebounded, but the oil market and oil analysts say that the ongoing economic slowdown and looming recessions could limit demand growth in the near term.
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Source: Oil Price
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