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Oil Demand Below Estimate in Jan on Warm Weather: JP Morgan

OIL

January oil demand is likely to end 400kb/d below expectations due to lower heating oil use from an unseasonably warm month according to a note from JPMorgan on Jan 31.

  • Lower flight activity in Europe also added to a drop in European demand of about 100kb/d more than expected.
  • US gasoline demand is tracking 400k b/d below estimate but distillates demand continues to improve.
  • China’s oil demand is 500kb/d below estimate in Jan amid soft heating demand.
  • Japan’s oil demand in Dec fell by 234kb/d y/y as use of nuclear power displaced fuel oil and kerosene.
  • Global jet fuel demand grew 500kb/d yoy for the week ending Jan 26.

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