U.S. Diesel Demand Poised for Freight Driven Recovery
Freight movements across the United States are showing signs of sustained growth, which should help push domestic diesel consumption higher this year. Freight was hit hard in 2015/16 by the switch from coal to gas-fired power generation, the slump in oil and gas drilling, and more generally by an unplanned build up in business inventories. The seasonally adjusted volume of freight moved by road…
U.S. Distillate Demand to Rise in 2017: Kemp
U.S. refiners are likely to see stronger demand for middle distillates such as heating oil and diesel in 2017 after two years of declining domestic consumption. Distillate consumption is forecast to increase by 60,000 barrels per day in 2017, after falling by 120,000 bpd in 2016 and 40,000 bpd in 2015, according to the U.S. Energy Information Administration.
U.S. Diesel Demand to Rise as Freight, Drilling Revive
Freight movements across the United States are showing signs of sustained growth for the first time in 18 months, which should support increases in diesel consumption in 2017. Freight volumes hit a record in July, passing the previous peak set back in December 2014, according to the U.S. Bureau of Transportation Statistics (http://tmsnrt.rs/2d06tby).
Global Oil Demand Growth Slowing: Kemp
The United States was one of the biggest sources of oil demand growth in 2015 but the outlook for 2016 is much more muted, according to official forecasters. The U.S. transportation sector continues to send mixed signals about the strength of fuel demand at the end of 2015 and heading into 2016. U.S. consumers are buying a record number of new vehicles…
California Drivers Send Warning to OPEC: Kemp
California's road traffic in 2014/2015 grew at the fastest two-year rate since 2001/2002, according to the state's Department of Transportation. OPEC is relying on continued strong growth in driving and fuel demand from the United States and other countries to help rebalance the oil market in 2016 and 2017. But continued strong growth in fuel demand is by no means assured, as the U.S.
El Nino, Sluggish Freight Upend U.S. Heating Oil Market
Heating oil prices in the United States are trading as if it was mid-summer rather than winter, as warm weather and sluggish demand from freight companies combine to make heating oil cheaper than gasoline. Heating oil normally trades at a substantial premium to gasoline in winter and then moves to a discount during the second and third quarters as heating demand fades and the summer driving season ramps up.
U.S. Jet Fuel Demand Soars
Fuel consumption by U.S. airlines is growing at some of the fastest rates for a decade, according to data published by the federal government. U.S. carriers consumed 1.6 billion gallons of fuel in July, up 3.4 percent from the same month a year earlier (http://link.reuters.com/qad75w). Fuel consumption for the first seven months of the year rose nearly 2.9 percent…
Transport Sector to Give Lift to Oil Demand
Demand for oil is intimately connected to the demand for transportation in the United States and the other advanced industrial economies. Cars, trucks, airlines, railways and shipping accounted for 71 percent of total U.S. oil consumption in 2013, according to the U.S. Bureau of Transportation Statistics. Petroleum-derived fuels, including gasoline, diesel…
