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Diesel and Jet Demand Lifted by China: JPMorgan

OIL

Global road-diesel and jet fuel demand has been lifted by strong Chinese trucking activity and a pick-up in international travel ahead of the Golden Week holiday according to JPMorgan.

  • Road-diesel demand rose 283kb/d y/y to the highest growth in 21 weeks in the week to 22 Sep. China trucking activity rose to a 2023 high of 59m trucks on expressways, up 7.9% over 2022 volumes.
  • Global jet fuel demand growth hit a 15 week high of 1.1mb/d y/y. China’s international flights returned to 80% of 2019 levels after easing to 79% over the past two weeks.
  • Global gasoline consumption rose 400kb/d y/y, supported by a 300k b/d increase in US consumption. However, four-week average US gasoline demand dropped to a 31-week low of 8.7mb/d, following seasonal weakness following the end of the peak driving season.
  • Total global demand growth for mobility fuels was 1.8mb/d y/y, slightly above the ytd average.

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