Joint Organization Data Initiative (JODI) released some data that indicates that global oil demand for September this year has exceeded that of September 2019 pre-Covid levels.
According to the JODI data showed by the Riyadh-based International Energy Forum (IEF) on Thursday, worldwide oil demand for September this year was at 101% of pre-Covid levels, while the production of crude was 99% of those levels.
This growth in demand for September came following the drop in July and its rebound in August by 99% to 2 million bpd of pre-Covid levels.
Another factor that IEF pointed out was the demand for gasoline in the US and the consumption of diesel in China.
In September, the demand in the US was higher by 1.03 million from a year prior, soaring at 570,000 bpd, with a crude oil production of over 1.13 million bpd from a year ago.
Meanwhile, crude oil imports in China rose to 9.82 million bpd by 290,000 bpd but were still down by 197,000 in September compared to the same period last year.
Saudi Cuts Oil Exports as OPEC Cuts Output
Saudi Arabia, the world’s top crude oil exporter, has begun to cut exports by more than 400,000 bpd as OPEC reduced its total target production by 2 million bpd.
In Kpler data cited in a report, Saudi’s oil shipments were down by 430,000, while Petro-Logistics estimates showed that OPEC oil shipments were on the course for a 1 million bpd drop.
Starting in November, OPEC will slash its collective target by 2 million bpd, although the actual cut is expected to be only half of that at around 1.1 million bpd. Still, this cut will be the biggest since April 2020, when the oil demand dropped at the beginning of the pandemic.
Separately, WTI prices dropped by almost 5% to $81.76 per barrel on Thursday, with Brent crude tumbling 3% to $90.07 per barrel, which was $2.79 lower from yesterday.
