Global Oil Demand Surges Amidst Slow Production Growth
In June, global oil demand saw an increase of over 1 million barrels per day compared to May. However, the rise in production was only half that amount, resulting in stock levels falling below the five-year average, according to the latest data from the Joint Organization Data Initiative (JODI).
Data shared by the Riyadh-based International Energy Forum (IEF) indicated that oil demand from 48 Jodi countries rose to 1.23 million barrels per day for the month, with a notable 638,100 barrels per day increase in June.
This monthly spike in demand was largely driven by the United States, where consumption jumped by 1.28 million barrels per day compared to May. There were also increases in monthly demand from Canada, Italy, the UK, and South Korea.
Additionally, these nations, along with India and Norway, contributed to the growth in annual oil demand, as reported by JODI.
On the flip side, global crude oil production among Jodi Report countries managed to rise by only 524,000 barrels per day from May, with a total of 1.45 million barrels per day when compared to June 2024.
Saudi Arabia was a key player, increasing production by 922,000 barrels per day in June 2025 relative to June 2024. Nigeria followed suit, where U.S. production rose by 186,000 barrels per day, marking the largest annual supply growth.
This early summer surge in demand, alongside modest production increases, resulted in a crude inventory reaching the five-year average of 166 million barrels across reporting countries.
Although product inventories grew by 6.8 million barrels in a month, they still fell short of the five-year average as of June, according to JODI data.
With demand climbing during the peak summer months, the oil market appears to be tightening, as inventory levels remain below the five-year average.
However, analysts caution that this balance may shift dramatically as OPEC+ plans to unwind a 2.2 million barrels per day cut by the end of September, which will likely impact the market starting in 2026.
