U.S. Oil Demand Up For The First Time In 2009

oil

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.

Read the whole thing at Platts →

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