JP Morgan: Global Oil Demand in Early May Indicates Tepid Year-on-Year Growth

SEATTLE (Oil Monster): According to the most recent research note released by the JP Morgan Commodities Research team, the world's oil demand in early May of this year showed modest annual growth.

The memo claims that the final global liquids demand estimates for 1Q25, which increased by 1.6 million barrels per day year over year, were in line with its prediction. According to preliminary figures for April, consumption was almost 500,000 barrels per day lower than anticipated. According to the research note, this weakness has persisted into May.

Global oil demand averaged 103.5 million barrels per day at the end of the first week of May, which was 280,000 barrels per day more than the same period the previous year. With the start of the summer driving season in the Northern Hemisphere, JP Morgan stated that it anticipates an upswing in demand in the upcoming weeks.

The first week of May this year saw a drop of about 4 million barrels in the observable OECD commercial oil stock. The increase in crude oil stocks partially offset the decline in oil products stocks. There was an 8 million barrel rise in the world's total liquid stockpiles. According to JP Morgan, Chinese crude stocks saw a sharp rise, showing a growth of almost 26 million barrels over the course of the week.

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