The Energy Information shows us that gas in July was the lowest it had been since June 2004. Fuel efficiency has gotten better, and there is a soft economy meaning the demand for gas is lower. This lower demand is causing, and being compounded by, rising gasoline prices.
Drop in gasoline demand
Over 2008, the demand for both gasoline and oil dropped considerably. People paid $ 4 and more for gas because of the drop. There were also more fuel efficient and hybrid autos created. Fuel efficient cars are nevertheless being made although there has been more of a demand since late 2009. In the winter, more oil is needed for heating so the demand for oil is more than the demand for gas.
Production of U.S. oil
There is a strong connection between U.S. oil production and gas prices. Although offshore drilling being shut down has hurt this number, typically 28 percent of U.S. oil production is met inside the country. Since there is less production of oil in the U.S., more imports have to be brought to the country.
More driving during the summer
The uptick in demand for oil over the last few weeks has been attributed, partially, to the summer driving system. As outlined by the Automobile Association, there can be further road trips taken by people this summer meaning more driving.
United States comparisons with fuel
The largest consumer of fuel is surely the U.S.. China is the second-largest consumer of gasoline, but demand in China is quickly rising to levels that could make it first. Gas can cost up to $ 8 per gallon in European countries that have taxes. Fuel efficient cars will probably become more popular with supply decreases.
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