Demand for oil in the U.S. is up for the first time in 2009 on a year over year basis, says Platts.
The catch? About a year ago the economy was ready to blow up, and that killed the demand for oil, which makes it a low bar to hurdle, so to speak. The other catch? Demand for oil might not ever return to the heights of 2008.
Total US oil demand on a four-week moving average ending August 28 turned positive year-on-year, the first such occurrence in months, according to data released Wednesday by the Energy Information Administration.
EIA reported total US oil demand at 19.292 million b/d, up 10,000 b/d.
However, that four-week moving average comparison includes preliminary and revised statistics. In addition, year-on-year comparisons are less glaring as they were earlier in 2009 since last September was the month that the global economy was on the precipice of a complete collapse, sending oil demand on a downward spiral.
But, comparing the four-week moving averages of just the preliminary weekly data, at 19.292 million b/d, US oil demand was down 1 million b/d year-on-year, a depreciation of 4.93%.
…The jump in gasoline demand and a 224,000 b/d drop in imports to 878,000 b/d resulted in a 2.969 million barrel draw in gasoline stocks. At 205.085 million barrels, US gasoline stocks were still 7.772 million barrels above the five-year average and 10.681 million barrels above year-ago levels, more than ample cushions at the end of driving season. Gasoline stocks have decreased a cumulative 10.306 million barrels over the past six weeks, half the rate of decline seen in 2008 when inventories finished peak driving season below 195 million barrels.
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