Record US oil demand bodes well for the crude market
Crude lower today but rising demand is impressive
The EIA releases US implied oil demand numbers weekly and today’s report showed a jump in implied demand to nearly 23 million barrels per day. That’s a record at a time when jet fuel demand is still severely contained.
The jump speaks to the demand for automobiles during the pandemic, the shift away from public transportation and demand for oil products.Another interesting chart that’s been doing the rounds this week is from Morgan Stanley. They highlight that while EVs are now 60% of new car sales in Norway, oil consumption has been flat. It underscores that only 25% of crude is used for transportation.
Finally, there are reports that Chinese oil demand is beginning to pick up after five months of slower buying.
Traders in Asia and Europe told Reuters that Chinese buyers recently
bought Brazilian and Angolan grades at higher premiums than in the
previous month, while enquiries from independent refiners have
increased.
WTI crude oil is down 16-cents to $68.34 today.
