In February 2024, global oil demand surged to a five-year seasonal high, with India setting consumption records while China experienced a decline during its holiday season.
Global oil demand experienced a significant upswing in February 2024, increasing by 1.2 million barrels per day (bpd) from the previous month and reaching a five-year seasonal high. This information was released by the Joint Organizations Data Initiative (JODI), as reported by the Riyadh-based International Energy Forum (IEF) on Wednesday.
The comprehensive data provided by JODI, which tracks oil demand from 38 participating countries, indicated that the demand in February 2024 not only surpassed January's figures but also showed a rise of 1.1 million bpd compared to the same month in the preceding year.
According to the data, the surge in oil demand was primarily fueled by increased consumption of gasoline and jet fuel, with gasoline demand marking a five-year seasonal peak. Jet fuel demand also saw an impressive year-on-year increase of 300,000 bpd in February.
India emerged as a notable contributor to the heightened global oil demand, recording an all-time high in February. The country's total product demand soared by 265,000 bpd to reach 5.59 million bpd. Even though India's crude oil imports witnessed a decline of 506,000 bpd, the nation's product exports reached a seasonal high, escalating by 346,000 bpd.
Contrastingly, China experienced a downturn in both oil demand and refinery operations in February, coinciding with the Lunar New Year holiday period.
Looking ahead, the Organization of the Petroleum Exporting Countries (OPEC) has projected a robust summer fuel demand that is anticipated to bolster oil consumption growth in 2024. OPEC's forecast, released last week, suggests a vigorous market with increased transportation fuel usage during the summer travel season, across different regions.
OPEC maintains its forecast of global oil demand growth at 2.2 million bpd for the year 2024, a figure that has remained consistent with the previous month's assessment. For 2025, the cartel predicts a "robust growth" of 1.8 million bpd when compared to 2024 levels.
However, the International Energy Agency (IEA) has taken a more conservative stance, revising its 2024 world demand growth forecast downward by 100,000 bpd. The IEA now anticipates a growth of 1.2 million bpd, a rate significantly lower than OPEC's projection.
