By Emeka Ugwuanyi
Global oil demand climbed in December by 1.3 million barrels per day (mbpd) to a new record high, according to new data from the Joint Organizations Data Initiative (JODI). Demand growth was driven primarily by gains in Japan, Indonesia, and Korea.
Meanwhile, global crude production declined by 274,000 barrels per day (kbpd) in December to a five-month low, led by losses in the US and UK.
Global demand was at 102 per cent of pre-COVID levels in December, while crude production was at 96 percent of pre-pandemic levels.
While markets tightened compared to November, global inventories of crude and refined products climbed counter seasonally by 5.46 million barrels. Inventories remain 354 million barrels below the five-year average.
This month’s report did not include December data for China or Russia. However, Russia’s November data was included for the first time. Russian crude production increased by 143 kbpd in November to 10.02 mbpd and was only 235 kbpd below pre-invasion levels.
Meanwhile, Russia’s natural gas production increased by 2.6 billion cubic metre (bcm) to a six-month high.
EU+UK natural gas inventories declined by 9.5 bcm in December, less than the seasonal average draw of 11.5 bcm. Inventories stood at 85 percent full at the end of the month.
The JODI oil and gas databases were updated on Monday with 53 countries reporting data for the latest month of December 2022. The December data submissions account for more than 57 per cent of global oil demand and global crude production.
Oil December data highlights:
Saudi Arabia
Crude production fell by 33 kbpd to 10.44 mbpd.
Crude exports rose by 157 kb/d to 7.44 mbpd.
Crude inventories fell by 3.05 million barrels and product inventories increased by 2.66 million barrels.
Direct crude burn rose counter-seasonally by 48 kbpd to 477 kbpd – a five-year seasonal high.
United States
Crude production fell by 288 kbpd to 12.09 mbpd.
Total product demand rose by 169 kb/d to 20.76 mbpd.
Crude oil closing stocks fell by 6.55 million barrels to the lowest level recorded in JODI.
Product closing stocks increased by 6.41 million barrels.
Japan
Total product demand rose by 512 kbpd to a 12-month high.
Russia (November data)
Crude production rose by 143 kbpd to 10.02 mbpd.
Crude refinery intake rose by 68 kbpd to 5.71 mbpd.
Natural Gas December data highlights:
Natural gas demand increased by 30.96 bcm in December. Meanwhile, gas production fell by 0.18 bcm month-on-month.
EU+UK gas consumption was at a five-year seasonal low in December. Inventories fell by 9.5 bcm to stand 85 percent full at the end of the month. The group’s LNG imports were up 66 percent from a year ago.
Total gas inventories decreased by 27.6 bcm month-on-month in line with the seasonal average draw.
The next update will be on Thursday, March 16th with data through January 2023.
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