SunSirs: Global Oil Demand Reached a New monthly Record High in December 2023

According to foreign news on February 20th, the latest data released by the Joint Oil Database (JODI) on Tuesday showed that global oil demand increased by over 500,000 barrels per day in December compared to November, marking the eighth highest monthly record for 2023.

JODI stated that in the last month of 2023, the growth in demand in the Asian region offset the decline in demand in the United States and Europe.

According to JODI's database, oil demand increased by 541,000 barrels per day in December compared to November. The month on month growth in oil demand is mainly driven by China, followed by Japan and India. The agency's data shows that the growth in demand has far offset the decrease in demand in the United States, Italy, and Germany.

In terms of fuel, global demand for liquefied petroleum gas (LPG) rose to a record high in December, while demand for gasoline and diesel fell to a five-year average.

In terms of global crude oil production, there was a slight increase in production in December, but a year-on-year decrease of 300,000 barrels per day, and it is still slightly below the five-year average level. According to JODI's database, production in Saudi Arabia (a year-on-year decrease of 1.5 million barrels per day) and Iraq has sharply decreased compared to the same period last year, partially offset by a year-on-year increase of 1.1 million barrels per day in production in the United States, Canada, and China.

Data shows that Saudi Arabia, as the leader of the Organization of the Petroleum Exporting Countries (OPEC) and the world's largest crude oil exporter, increased its production by 126,000 barrels per day in December from the previous month to 8.94 million barrels per day, while crude oil exports decreased by 28,000 barrels per day to 6.31 million barrels per day.

JODI stated that global crude oil inventories decreased by 8 million barrels in December, 275 million barrels lower than the five-year average.

The decline in inventory and strong demand may further support oil prices this quarter, especially if OPEC decides to continue all or part of the 2 million barrels per day production reduction in the first quarter of this year.

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