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Global oil demand fell in July by approximately 1.1 million barrels per day, driven by declines in OECD Europe, India, China, Saudi Arabia, and Indonesia, new data from the Joint Organizations Data Initiative (JODI) showed on Monday.
The drop is in contrast to the five-year average for the month of July, excluding the pandemic years of 2020-2021, which shows demand rising seasonally by an average of 350,000 b/d.
Meanwhile oil prices fell by over 1.5% on Monday, pressured by expectations of weaker global demand and a strong dollar ahead of a possible interest rate hike.
Global crude oil production increased by about 50,000 b/d in July, the JODI update shows. The July changes brought both crude oil production and demand to 98% of pre-pandemic levels.
The data also showed that Russian gas production declined for a fourth consecutive month and was more than 34% below March levels.
Demand from China fell by 191,000 b/d in July and was 655,000 bd below year-ago levels. However, it was still 135,000 b/d above July 2019 levels.
Saudi Arabia's crude production rose by 169,000 b/d to 10.82 million b/d while crude exports grew by 188,000 b/d to 7.38 million b/d, a 27-month high, according to the data.
(Writing by Brinda Darasha; editing by Seban Scaria)
