JP Morgan Foresees Rebound in Oil Demand in Coming Weeks

SEATTLE (Oil Monster): As per their most recent analysis, the JP Morgan Commodities Research team predicts that oil prices will rise in the upcoming weeks. According to the research paper, as of the second week of 2025, the world demand had increased by 1.2 million barrels per day year over year, which was around 175,000 barrels per day less than its estimates.

The gains made in early 2025 were negated by the disruptions in travel inside the United States, which offset the increased heating oil usage. The demand for oil is predicted to increase by 1.4 million barrels per day over the previous year, reaching an average of about 101.4 million barrels per day. Increased travel activity in India and the approaching Lunar New Year celebrations in China are expected to be the primary drivers of the anticipated spike in demand.

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In the second week of January, there was a 25 million barrel drop in the world's oil stockpiles, which include both crude oil and oil products. The drop in global crude oil inventories was the primary cause of the reduction. Despite the addition of 18 million barrels to China's inventory, the world's crude oil stocks were reported to be declining.

Additionally, during the second week of January 2025, there was a net draw of six million barrels of OECD commercial oil stockpiles. A total of three million barrels were drawn from the United States. Meanwhile, according to JP Morgan, the only region to record an overall increase in oil stocks was Europe.