• 4 minutes End of Sanction Waivers
  • 8 minutes Balancing Act---Sanctions, Venezuela, Trade War and Demand
  • 11 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 14 minutes What Would Happen If the World Ran Out of Crude Oil?
  • 1 hour ..
  • 8 mins New German Study Shocks Electric Cars: “Considerably” Worse For Climate Than Diesel Cars, Up To 25% More CO2
  • 2 hours Summit: Kim, Putin To Meet Thursday in Russia’s Far East
  • 12 hours Deep Analysis: How China Is Replacing America As Asia’s Military Titan
  • 10 hours Don't Climb Onto the $80+ Oil Price Greed Roller Coaster, Please.
  • 2 hours Iran Sabre Rattles Over the Straights of Hormuz
  • 18 hours Populist Surge Coming in Europe's May Election
  • 1 day Saudi Arabia Says To Coordinate With Other Producers To Ensure Adequate Oil Supply
  • 1 hour China To Promote Using Wind Energy To Power Heating
  • 31 mins Nothing Better than Li-Ion on the Horizon
  • 22 hours Liberal Heads Explode as U.S. Senate Confirms Oil Lobbyist David Bernhardt as Interior Secretary
  • 4 hours How many drilling sites are left in the Permian?

Will High Gasoline Prices Weigh On Oil Demand?

oil

Friday April 27, 2018

In the latest edition of the Numbers Report, we’ll take a look at some of the most interesting figures put out this week in the energy sector. Each week we’ll dig into some data and provide a bit of explanation on what drives the numbers.

Let’s take a look.

1. Gasoline prices at highest in years

(Click to enlarge)

- Global demand is expected to rise by 1.6 mb/d this year, which could mark the fourth consecutive year of demand growth exceeding 1.5 mb/d, the longest stretch since the 1970s.
- But OPEC cuts combined with strong demand has pushed oil prices up to multi-year highs. The EIA says that gasoline prices in the U.S. will average $2.74 per gallon this summer, the highest in four years.
- If prices keep rising, demand will slowdown. There is debate about when this occurs and by how much, but above $3 per gallon, U.S. consumption starts to take a hit.
- OPEC seems somewhat in denial. "I haven't seen any impact on demand with current prices," Khalid Al-Falih told reporters at the meeting of OPEC and non-OPEC producers in Jeddah.

2. Offshore drilling picking up

- The head count at oilfield services companies exposed to the subsea industry has declined by 32 percent since 2013.
- The losses continued last year. In 2017, subsea-exposed companies cut 10 percent of its workforce relative to the year before.
- However, offshore drilling is starting to revive…




Oilprice - The No. 1 Source for Oil & Energy News