{"id":4964,"date":"2015-01-28T11:41:28","date_gmt":"2015-01-28T16:41:28","guid":{"rendered":"http:\/\/olduvai.ca\/?p=4964"},"modified":"2015-01-28T11:41:28","modified_gmt":"2015-01-28T16:41:28","slug":"increasing-demand-for-refined-products-will-increase-oil-prices","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=4964","title":{"rendered":"Increasing Demand For Refined Products Will Increase Oil Prices"},"content":{"rendered":"<h3><a href=\"http:\/\/oilprice.com\/Energy\/Oil-Prices\/Increasing-Demand-For-Refined-Products-Will-Increase-Oil-Prices.html\" target=\"_blank\">Increasing Demand For Refined Products Will Increase Oil Prices<\/a><\/h3>\n<p>In last week\u2019s article I posted a chart from the\u00a0<strong>International Energy Agency\u2019s<\/strong>recent\u00a0<strong>Oil Market Report<\/strong>\u00a0that shows global demand for refined products catching up to supply by the 3rd quarter of this year. My opinion is that all of the analysts who are now blaming the sharp drop in oil prices on a \u201cglut\u201d of supply could change their tune quickly as consumers adjust to lower fuel costs. Just as higher costs reduce demand for any commodity, lower costs will increase demand. This is especially true for a commodity that has a direct impact on standard of living, like oil does.<\/p>\n<p>When the price of gasoline plunged below $1.00\/gallon in 1986, demand for motor fuels and other refined products increased by almost 5% within twelve months. Today, world demand for hydrocarbon based liquid fuels (including biofuels) is over 92.5 million barrels per day. You can go to the\u00a0<a href=\"https:\/\/www.iea.org\/oilmarketreport\/omrpublic\/\">IEA website<\/a>\u00a0and see for yourself that normal seasonal demand is expected to push demand over 94.0 million barrels per day within six months. I think both the IEA and our own<strong>Energy Information Administration (EIA)<\/strong>\u00a0are grossly underestimating the price related demand increase that is already starting to show up in the data.<\/p>\n<p>Last week\u2019s EIA report confirms that demand is already surging in the United States. Granted, part of the year-over-year increase in gasoline consumption may be a result of the harsh winter weather we had last year, but I think this story is going to play out. If gasoline prices remain low until this summer, we should see a sharp increase in the number of Americans that decide to take long driving vacations this year. We do love our SUVs.<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Increasing Demand For Refined Products Will Increase Oil Prices In last week\u2019s article I posted a chart from the\u00a0International Energy Agency\u2019srecent\u00a0Oil Market Report\u00a0that shows global demand for refined products catching up to supply by the 3rd quarter of this year. My opinion is that all of the analysts who are now blaming the sharp drop [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3],"tags":[251,267,416,433,589,2245,595,834],"class_list":["post-4964","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-eia","tag-energy-information-administration","tag-iea","tag-international-energy-agency","tag-oil-demand","tag-oil-market","tag-oil-production","tag-us"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/4964","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4964"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/4964\/revisions"}],"predecessor-version":[{"id":4965,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/4964\/revisions\/4965"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4964"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4964"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4964"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}