Demand for Petroleum Decreases as the Economy “Recovers”?

The price of gasoline keeps rising as consumption decreases. My previous article outlining how our government is “playing” us with their energy policy is either:

  1. a means to control us
  2. another display of incompetence
  3. both of the above

As long as the American people submit, the only change we will receive is more control and propaganda. The following excerpt outlines the continuing depression as shown by a decline in energy usage. In what free market economy does the price rise when supplies are not constrained and demand has decreased? In what free market does the stock market rise as volume collapses?

David DeGerolamo

 What Recovery? Petroleum Deliveries Lowest Since September 2008; Weakest July Demand Since 1995

While the Achilles heel to the endless “economic data” BS coming out of China may be its electric production and demand, both of which show a vastly different picture than what the Beijing politburo’s very wide brush strokes paint, the US itself is not immune from indicators that confirm that anything the BEA dishes out should be taken with a grain of salt. One data set that we showed recently that paints a drastically different (read slowing) picture of the US economy which we noted recently is railcar loading of waste and scrap for the simple reason that “The more we demand, the more waste is generated by that production.” Of course, the propaganda manipulation machinery only focuses on the “entrance” of production, and completely ignore the “exit.” But an even far more important metric of the general health of the US economy may be none other than broad energy demand, in the form of petroleum deliveries and gasoline demand. If this is indeed the relevant metric to observe, then things are about to get far, far worse. As Dow Jones notes: “U.S. petroleum deliveries, a measure of demand, fell by 2.7% in July from a year earlier to the lowest level in any month since September 2008,the American Petroleum Institute, an industry group, said Friday.” It gets worse: “Demand in the world’s biggest oil consumer, at 18.062 million barrels a day, was the weakest for the month of July since 1995, the API said. Year-to-date demand is down 2.3% from the same period in 2011.

Did Americans forget to drive?

Demand for gasoline, the most widely used petroleum product, dropped 3.8% from a year earlier, to 8.624 million barrels a day, the lowest July level since 1997. Gasoline use in the heart of the peak summer driving season was 2.2% lower than in June. January-July gasoline demand averaged 1.1% below a year earlier, at 8.671 million barrels a day, the API said.

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Fedup
Fedup
8 years ago

The oil companies have closed refineries to cause a demand and raise prices. One of their best refineries was in Bakersfield Cal. it was efficient and doing well when they closed it. This caused a 10% shortage in Cal. which made gas prices go up. When was the last refinery built in the USA? o’bama sends 2 Billion of our money to a south american friends country (Chaves) for oil exploration and said WE will be their best customer while he closed the gulf for drilling. It is a political and oil company profit driven thing for oil prices to rise. When demand is up and there is lots of oil why does prices rise> PROFIT. If I had a product and had lots of it i would sell it at a normal price so lots and lots of people would buy it. I wouldn’t sell it for lots of money and reduce how much I sold.
Oil is a bit in the publics mouth and the Government and the companies pull the reins. We go when and where they wish. We have to use the stuff and they controll it.