While bearish oil traders kept their focus on the supply side of oil, many forgot to focus on the demand side and it is the demand side that propelled oil back to a three-week high yesterday. That put oil back to the highest level since the big stock market correction drop. The catalyst was an unseasonal 1.16 million barrel drop in crude supply and continued to rip roaring demand.
Gasoline demand increased by 222k barrels last week and has averaged 9.1 million barrels a day, which is up 5.4% from year ago levels. That is a sign that consumers are feeling strong and are out driving and spending money.
Overall total oil products demand is averaging a very healthy 20.6 million barrels per day, up by 4.3% from the same period last year. Distillate demand has averaged 4.1 million barrels per day over the last four weeks, up by 4.3% from the same period last year. Jet fuel demand is also surging and is up a whopping 6.7%, compared to the same four-week period a year ago.
About the Author
Senior energy analyst at The PRICE Futures Group and a Fox Business Network contributor. He is one of the world's leading market analysts, providing individual investors, professional traders, and institutions with up-to-the-minute investment and risk management insight into global petroleum, gasoline, and energy markets. His precise and timely forecasts have come to be in great demand by industry and media worldwide and his impressive career goes back almost three decades, gaining attention with his market calls and energetic personality as writer of The Energy Report. You can contact Phil by phone at (888) 264-5665 or by email at pflynn@pricegroup.com. Learn even more on our website at www.pricegroup.com.
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