Oil demand grew by 1.33 mbd in 1Q24, with crude-derived products such as gasoline and diesel comprising only 40% of that growth, compared to petrochemical products that use lighter natural gas liquids as a feedstock. In April, half of the 1.3 mbd YoY rise in reported demand came from petrochemicals, marking the shift into more crude-heavy summer consumption. Oil demand is moving from a seasonally low April and May into a peak summer travel season. Importantly, the composition in demand growth will likely shift from liquids-heavy petrochemicals to crude-rich products like gasoline and jet fuel. We still expect overall market fundamentals to improve and see a similar price action as observed last summer, with Brent oil moving $10 higher from current levels by September.

Speakers:

Natasha Kaneva, Head of Global Commodities and Oil Research

This podcast was recorded on 31 May 2024.

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