for Gasoline 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.
The sharp increase in gasoline inventories since the end of last year has raised some concerns, helping deflate the bullish sentiment that has permeated the oil market over the past few months.
Exports of refined products and a rebound in gasoline demand have been crucial elements of refiner success as of late.
Last year, consumers globally saved 870 million barrels of oil as a result of efficiency improvements since 2000. Germany and China have been more successful in maintaining fuel economy gains during low oil prices.
Growth in refining capacity, high downstream utilization, and flexibility provided by cheap feedstock thanks to the shale boom have all boosted U.S. energy security and lowered pump prices for consumers.