World oil consumption may rise 2 per cent next year, led by increased usage of diesel, gasoline and jet fuel in the U.S., Societe Generale said.
Demand may rise 1.6 million barrels to 82.7 million barrels a day, according to France’s third-largest bank. Consumption is estimated to rise 3.3 percent to 81.1 million barrels this year, as economic growth in China boosts demand.
The US will have a far greater weight in global demand growth in 2005, sasid the head of commodities research at SG Economic Research in Paris. Transport fuels, particularly gasoline, diesel and jet kerosene, will continue to lead the rise in usage.
Crude oil futures in New York are 23 per cent higher than a year earlier because of rising U.S. demand, refining bottlenecks that limit gasoline supplies and growing concern that terrorist attacks in Middle East will disrupt supplies.
The U.S. oil demand may rise 450,000 barrels a day in 2005 compared with a year earlier, the report said. Societe Generale estimated oil demand in the worlds largest consumer to increase 390,000 barrels a day this year.
Shortages in U.S. refining capacity and rising demand will keep profit high for refiners in the U.S. and Europe, Societe Generale said.