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OIL: Global Oil Consumption Above Estimate at 103.5mb/d in Early May: JPMorgan

OIL

Global oil consumption averaged 160kb/d above estimates at 103.5mb/d in the first week of May according to JPMorgan’s high-frequency demand indicators.

  • Global demand year to date has risen by 1.6mb/d y/y compared with a forecast in November for a gain of 1.7mb/d.
  • Overall oil demand in India showed a record seasonal high in April with a 326kb/d y/y increase.
  • China’s oil demand however was 300kb/d below estimates in May so far at 16.8mb/d likely due to lower industrial demand amid recent holidays.
  • The decline in diesel cracks since February is likely overdone with a floor around current levels of $25/bbl. Diesel cracks in the US and Europe rose 4-6% w/w through May 7.

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