for Gasoline Demand
Despite the rise in EV sales in China, long-term trends of a rising population and a growing middle class will increase the country’s appetite for petroleum.
The largest proportion of commuting in U.S. metropolitan areas occurs from suburb-to-suburb, standing at 40 percent of metropolitan commuters as of 2015.
The average light-duty vehicle now remains in service for over three years longer than it did two decades ago. With vehicles “living” longer, the fleet will take longer to replace itself.
U.S. gasoline and other motor fuels spending increased throughout 2017, reflective of rising prices and continued high demand.
Factors other than ridesharing carry more weight behind the surge in VMT. Lower pump prices, economic growth, and rising household income are underpinning increased travel.
Like a scene out of the movie Zoolander, fights have occurred at gasoline stations in hurricane-affected areas.
Are Recent U.S. Crude Draws the Result of a Normal Seasonal Decline or a Delayed Effect of OPEC’s cut?
Crude stock draws are not out of the ordinary for this time of the year, but it appears that some OPEC members restricting supply has begun to bite the U.S. market.
Headlines around electric cars and carbon policy suggest our oil dependency is on a slippery downward slope. Recent data from 2016 suggests the opposite: our worldwide addiction is getting stronger.
A combination of an extended period of low prices, consumers buying larger vehicles, and strong economic growth has caused demand to soar since it reached its nadir in 2012.
If fundamentals weaken and oil market sentiment shifts, a sharp price correction is likely once investors liquidate their long positions.