Global Oil Demand Hits Record, Prices May Climb -- Rigzone -- August 11, 2023

Locator: 45432OIL.

Yesterday, it was reported that OPEC estimated global crude oil demand would hit 104.25 million bopd in 2024. 

Now: link here. We're already at 103 million bopd. 

From the link:

Global oil demand has surged to a record amid robust consumption in China and elsewhere, threatening to push prices higher, the International Energy Agency said. 

World fuel use averaged 103 million barrels a day for the first time in June and may soar even higher in August, the agency said in a report. As Saudi Arabia and its partners constrict supplies, oil markets are tightening significantly.

“Oil demand is scaling record highs, boosted by strong summer air travel, increased oil use in power generation and surging Chinese petrochemical activity,” the Paris-based IEA said. “Crude and products inventories have drawn sharply” and “balances are set to tighten further into the autumn.”

Oil this week touched a six-month high above $88 a barrel in London amid the post-pandemic resurgence in fuel use and supply restraint by the Saudi-led OPEC+ alliance. Brent futures eased back a little to trade below $87 on Friday.

The plunge in world oil demand during the Covid-19 crisis three years ago spurred speculation that consumption may be close to a peak as remote working gained in popularity and governments sought to shift away from fossil fuels to avert catastrophic climate change.

But the IEA data shows that, despite growing evidence of a warming planet shown by this summer’s heat waves and wildfires in the Northern Hemisphere, oil use is stronger than ever. China will account for 70% of this year’s demand growth, but surprisingly resilient developed nations added to the latest surge.