In a research note published late Friday, analysts at J.P. Morgan said their high-frequency demand indicators estimate that worldwide oil consumption averaged 103.4 million barrels per day through May 22. That figure was in line with their published estimates, the analysts highlighted in the note.
“Sequential demand improved markedly in May after underperforming expectations throughout the first four months,” the analysts added.
“As we enter peak demand season next week, we project global oil liquids demand to improve by another 2.7 million barrels per day by the end of August, measured from the end of April,” they continued. In a previous research note on May 20, analysts at J.P. Morgan revealed that their high-frequency demand indicators estimated that worldwide oil consumption averaged 103.3 million barrels per day in the first half of May. That was 90,000 barrels per day above their published estimates, the analysts highlighted in that report.
“After underperforming our projections by 400,000 barrels per day in the first four months of the year almost entirely due to warm winter, demand improved markedly in May,” the analysts noted in that report.
“Year to date, global oil demand rose by 1.7 million barrels per day compared to the same period last year, in line with our projections from last November,” they added. “On a year over year basis, demand grew by 1.9 million barrels per day, below our expectations of a 2.1 million barrel per day increase,” the analysts noted in the report. According to the U.S. Energy Information Administration’s (EIA) latest short term energy outlook (STEO), which was released earlier this month, world petroleum and other liquid fuels consumption is expected to average 102.41 million barrels per day in the second quarter of this year and 102.84 million barrels per day overall in 2024. It averaged 102.11 million barrels per day in the first quarter of 2024 and 101.92 million barrels per day overall in 2023, the report showed. In its previous STEO, which was released in April, the EIA forecast that international petroleum and other liquids consumption would average 102.73 in the second quarter of 2024 and 102.91 million barrels per day overall this year.