EIA Predicts Diesel Consumption to Grow in 2024 & 2025
January 18, 2024
The API had crude oil inventories up 483,000 barrels, gasoline up 4.86 million and distillates up 5.21 million.
The average estimate for today’s DOE inventory report from the Bloomberg survey are crude stocks up 49,000 barrels, gasoline up 2.059, and distillates up 764,000.
The average estimate for today’s propane inventory update is that supplies will decrease by 3.2 million barrels.
Extremely cold temperature in North Dakota have shut more than half of its crude oil production and this is offering some support to prices.
Demand for energy got some support from the US retail sales number for December 2023. The number came in better than expected with core Retail Sales (less vehicles & gas) rising by 0.6% from November 2023. This was double the 0.3% rise expected.
The EIA sees diesel consumption likely increasing from last year in both 2024 and 2025, expecting it to grow by 1.3% or 50,000 bpd this year due to continue economic growth.
In its monthly report OPEC kept its forecast for relatively strong growth in global demand in 2024 and said 2025 will see a “robust” increase in oil use, led by China and the Middle East.