Oil demand climbed to a record monthly high in June thanks to China’s ongoing post-pandemic recovery and a boom in global aviation.
Demand climbed to some 103 million barrels a day during the month, the International Energy Agency (IEA) said in a report, with August poised to provide another peak.
Both increased use of oil in energy generation and to fuel the rebound in global demand for air travel helped push the figures up.
“Chinese demand was also stronger than expected, reaching fresh highs despite persistent concerns over the health of the economy,” the intergovernmental organisation wrote.
Over the year, demand could top 102.2 million barrels a day, breaking yet further records, the analysis added.
On the price side, analysts explained that the series of production cuts by OPEC+ countries – which account for roughly 40% of global production – have helped to keep rates inflated.
“Prices […] continue to be supported by tight market conditions amid record demand,” Saxo strategist Ole Hansen said.
“The market is likely to remain in this state as long the Saudis maintain their one million barrel a day voluntary cut, or cracks begin to show up in the demand outlook.”
Brent crude was trading at US$85.79 per barrel on Tuesday, down 0.4% for the day, while West Texas Intermediate sat at US$82.02, having fallen by 0.6%.