• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 5 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 4 days The United States produced more crude oil than any nation, at any time.
  • 9 days e-truck insanity
  • 4 days How Far Have We Really Gotten With Alternative Energy
  • 8 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 7 days James Corbett Interviews Irina Slav of OILPRICE.COM - "Burn, Hollywood, Burn!" - The Corbett Report
  • 7 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 9 days Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 9 days "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 12 days Bankruptcy in the Industry
Iraq Has No Intention of Restarting Kurdish Oil Pipeline

Iraq Has No Intention of Restarting Kurdish Oil Pipeline

Baghdad is repairing the Kirkuk-Ceyhan…

US Oil Demand Grows at Fastest Rate in Two Years

The International Energy Agency (IEA) has declared that the demand for oil in the US is growing at its fastest rate in over two years, mostly due to the increase in demand for industrial fuels.

As a result of the poor economic conditions, and low prospects of future growth, demand for oil in the US has fallen in six of the past seven years, but driven by increased consumption of industrial fuels such as diesel, used to power trucks and trains, and propane gas, used by the petrochemicals industry, there has been a strong resurgence in demand.

So far this year the IEA states that US oil demand has grown in four of the first six months, prompting an upgrade in the organisation’s forecast for growth of US oil demand, from 0 to 0.3%, what will be the first year of growth since 2010.

Related article: GDP Growth must Slow as Oil Limits are Reached

The IEA has been surprised by the recent decision by the International Monetary Fund (IMF) to reduce its forecast for US GDP growth in 2014, claiming that they believe the demand for oil looks far more positive, and that “signs of recovery in the US economy have been associated with rising oil consumption in recent months.”

Data from the US government shows that gasoline demand has also increased compared with a year ago, suggesting that American motorists are driving more.

Amrita Sen, an analyst at Energy Aspects, told the FT that “the data has been strong enough for a sustained period to suggest a turning point has come and gone in the US, and demand is now improving on the back of industry.”

European demand for oil has also risen, going against the general belief that Western industrialised economies would gradually reduce their consumption as they strived to improve efficiency, and install more renewable energy in order to reduce emission levels and protect against volatile oil prices.

ADVERTISEMENT

The FT explains that this unexpected boost from some of the mature economies has helped oil to avoid the summer sell-off that afflicted many other commodities, due to the fear of slowing economic growth in China.

By. Charles Kennedy of Oilprice.com



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News