• 5 minutes Mike Shellman's musings on "Cartoon of the Week"
  • 11 minutes Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 17 minutes WTI @ 67.50, charts show $62.50 next
  • 2 hours Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 23 hours The Discount Airline Model Is Coming for Europe’s Railways
  • 11 hours Pakistan: "Heart" Of Terrorism and Global Threat
  • 2 days Newspaper Editorials Across U.S. Rebuke Trump For Attacks On Press
  • 3 hours Saudi Fund Wants to Take Tesla Private?
  • 7 hours Starvation, horror in Venezuela
  • 2 days Batteries Could Be a Small Dotcom-Style Bubble
  • 16 hours Venezuela set to raise gasoline prices to international levels.
  • 8 hours Renewable Energy Could "Effectively Be Free" by 2030
  • 10 hours Are Trump's steel tariffs working? Seems they are!
  • 1 day Scottish Battery ‘Breakthrough’ Could Charge Electric Cars In Seconds
  • 2 days France Will Close All Coal Fired Power Stations By 2021
  • 2 days Don't Expect Too Much: Despite a Soaring Economy, America's Annual Pay Increase Isn't Budging
Is This A Game Changer For Drones?

Is This A Game Changer For Drones?

Fuel cell technology could significantly…

WTI Set For Longest Weekly Losing Streak Since 2015

WTI Set For Longest Weekly Losing Streak Since 2015

West Texas Intermediate crude was…

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.

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

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