Investment Rating - The report does not explicitly state an investment rating for the industry Core Insights - The report provides a comprehensive analysis of the oil demand and refining sector, highlighting the significant changes in consumption patterns and the implications for investment strategies Group 1: Oil Demand Structure - Oil has a wide range of applications, with fuel remaining the primary demand source, accounting for approximately 80% of downstream applications [12] - The growth rate of global oil consumption is strongly correlated with GDP growth, with the Asia-Pacific region being the main consumer, expected to account for 38% of global oil consumption by 2024 [1][28] Group 2: Refining Product Consumption - The global refining product structure is shifting towards lighter components, with a significant decline in the share of heavy products like residual fuel oil and kerosene [2] - The United States remains the largest consumer of oil, with gasoline consumption accounting for nearly half of its refining product consumption [31] - China's refining product consumption has rapidly increased, with other oil products surpassing gasoline and distillate fuel oil to become the largest refining product [39] Group 3: Refinery Capacity and Production - There is a global oversupply of refining capacity, with refinery utilization rates around 80%, and a projected decline to 79.9% in 2024 [3] - India is expected to be a key player in future oil consumption and refining demand growth, with refinery utilization rates consistently exceeding 100% [3][49] Group 4: Global Oil Supply and Demand Outlook - Major energy agencies predict a surplus in global oil supply in the short to medium term, with supply growth outpacing demand growth, leading to downward pressure on oil prices [57] - EIA forecasts a global oil supply increase of 1.81 million barrels per day in 2025, while demand growth is expected to be only 0.80 million barrels per day [58]