OIL PRODUCTS: Global Demand Growth For Transport Fuels Declined Last Week

Global demand growth for transport fuels eased to 1.7mbd year on year for the week ending 6 May according to a JP Morgan note.

• This was down by 360kbpd from the 2.1mbpd year on year growth the week prior.
• China and the rest of Asia accounted for 1.2mbpd growth for the week ending 6 May, with most of the growth attributed to jet fuel.
• Excluding Asia, demand grew by 470kbpd on the year, led by US gasoline demand with a year on year increase of 450kbpd. In two weeks, the US will be entering the summer driving season with prices at the pump 16% lower compared to year-ago levels.
• US gasoline demand growth has been positive year on year over the four-week average since March and is up 100kbd year to date.
• Global road diesel demand declined 53kbd on the year, most of it China-led. Chinese trucks on highways dropped to 43mn due to Labour Day holidays in the first week of May, almost 10mn lower than the week prior but still 1% above year-ago levels.
• Global jet fuel demand rose by 1.2mbpd on the year, with Chinese international flights reaching 54% and domestic flights tracking 107% of 2019 levels.