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US Gasoline consumption, Saudi crude output

Posted by WARREN MOSLER on February 23rd, 2011

US demand continues to go nowhere, and may even be softening

And with Saudis posting prices to their refiners and letting quantity adjust, it doesn’t look like net world demand is doing much either

4 Responses to “US Gasoline consumption, Saudi crude output”

  1. Mr. E Says:

    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.

    http://www.bloomberg.com/apps/quote?ticker=OPCRSAUD:IND

    Reply

    WARREN MOSLER Reply:

    presumably only the saudis have excess capacity at this point

    if indeed they don’t, they lose control of price on the upside

    Reply

  2. Paul M Says:

    So with demand flat to declining are there a bunch of speculators waiting for a pump and dump once the Libyan chaos subsides? Assuming the Saudi’s do have excess capacity…

    Reply

  3. Snafu Says:

    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.

    Reply

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