Global oil demand jumped in June by more than 1 million barrels per day (bpd) from May, while production growth has half that figure, leaving inventories at below the five-year averages, the latest data by the Joint Organizations Data Initiative (JODI) showed on Wednesday.
Oil demand in 48 JODI-reporting countries surged by 1.23 million bpd month-on-month and by 638,100 bpd year-on-year in June, according to the most recent data by JODI shared by the Riyadh-based International Energy Forum (IEF).
The monthly surge in global demand was driven mainly by higher demand in the U.S. (1.28 million bpd higher than in May), as well as smaller monthly demand increases in Canada, Italy, the UK, and South Korea.
These countries, plus India and Norway, also drove the yearly demand oil growth, according to the JODI data.
At the same time, global crude oil production in JODI-reporting countries rose by 524,000 bpd in June from May and by 1.45 million bpd compared to June 2024, as Saudi Arabia, the world’s top crude exporter has boosted production this year in line with its commitments in the OPEC+ oil supply deal.
Saudi Arabia accounted for the largest share of yearly supply growth, with production up by 922,000 bpd in June 2025 compared to June 2024, followed by Nigeria, whose output increased by 234,000 bpd, and the United States, where annual production growth was 186,000 bpd in June.
The surge in early summer demand reported by JODI member countries and the smaller growth in month-on-month production led to crude inventories in JODI-reporting countries declining by 1.14 million barrels in June from May, settling at 166 million barrels below the five-year average.
While product inventories rose by 6.8 million barrels month-on-month, they were at 57.6 million barrels below the five-year average in June, the JODI data showed.
The oil market looks tight amid growing demand during the peak summer season, with inventories below the five-year average.
However, analysts warn that the tight summer balances will soon make way to a glut later this year and in early 2026 as OPEC+ is set to unwind 2.2 million bpd cuts by the end of September, when the peak summer travel season will have ended.
By Charles Kennedy for Oilprice.com
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