Global oil demand growth slowed down in 2018
Baku, Azerbaijan, March 28
By Leman Zeynalova – Trend:
Global oil demand rose by 1.3 percent in 2018, led by strong growth in the United States, Trend reports citing the Global Energy & CO2 Status Report of the International Energy Agency (IEA).
“The start-up of large petrochemical projects drove product demand, which partially offset a slowdown in growth in gasoline demand. The United States and China showed the largest overall growth, while demand fell in Japan and Korea and was stagnant in Europe,” reads the report.
IEA said that global oil demand growth slowed down in 2018 as higher oil prices partially offset robust economic activity around the world.
“Demand grew by 1.3 mb/d in 2018, less than the increase of 1.5 mb/d in 2017. Oil demand in advanced economies remained relatively robust, but, in emerging markets, oil demand slowed markedly in 2018,” the report shows.
Average Brent oil prices were 30 percent higher in 2018 than in 2017, according to IEA estimates.
“The United States showed the largest overall growth at 540,000 b/d, followed by China. The strong expansion of petrochemical demand in the United States boosted consumption, which also benefited from a rise in industrial production and very strong demand for trucking services,” reads the report.
IEA estimates that oil demand in China was up by 445,000 b/d, or 3.5 percent, with the rate of growth slowing down as the country moved toward a less oil-intensive model of development and curbed vehicle use to improve urban air quality.
“In particular, environmental policies have reduced diesel demand growth, as provincial governments are keen to develop cleaner transport fuels or electric buses,” said IEA.
Follow the author on Twitter: @Lyaman_Zeyn