Written in June 2015, when media enthusiasm over rising oil demand was hitting a crescendo, suggesting that demand would resolve the global oil supply imbalance. Although demand for price-elastic oil products, such as gasoline, continued to remain strong — especially in key markets of China, India and the US — a tepid macroeconomic environment had limited demand growth for other product grades. The media overreached when it suggested that European oil demand jumped 4% yoy in 1q15 on lower prices. In fact, bitterly-cold weather and changing bunker regulations drove the majority of Europe demand growth in 1q15, supporting crude runs. Normal weather patterns during the winter of 2015-16 led to negative yoy comparisons for Europe, pressuring distillate balances and pricing.  Download report here.