This entry was posted on Wednesday, February 23rd, 2011 at 4:49 pm and is filed under Comodities.
You can follow any responses to this entry through the RSS 2.0 feed.
You can leave a response, or trackback from your own site.
4 Responses to “US Gasoline consumption, Saudi crude output”
The Saudis are gearing up production and distribution for the last month. That little blip you see at the end of the chart is an attempt to keep their heads on their shoulders.
SA put together a $350Bn (billion!) 5 year jobs program. At 20k a job, that is 3.5 million jobs for 5 years in a country of 25m people. It is just kicking in now. GDP per capita is only 23k, so you have to figure for most people a 10k job is great.
If you all are tracking any opec oil production go to this bloomberg chart and fiddle around with the url. You’ll find iran and iraq, then every other country no problem.
The US demand for oil dropped from 20.5 million barrels a day to 18.6 million currently. As long as the economy in the US remains in the doldrums and the job market prospects keeps declining I suspect US oil consumption to remain flat if not drop some more. However, if the economy does pick up and people have extra disposable income, oil consumption will shoot thru the roof. And when that occurs there will be a price shock at the pumps because demand will outpace production creating shortages. So the cost of oil is dependent on demand so long as the output is capable of meeting the demand placed upon it. And that’s the big unknown.