Onyx Power and Gas Consulting continues a weekly series providing the Short Term Energy Outlook as of January 10, 2016. This series of news articles should provide a complete insight on the current conditions of the energy…enjoy, check out archives and come back each week for additional information on how all sorts of energy sources impact our daily lives.
What drives petroleum product prices: Consumption
Countries outside of the Organization for Economic Cooperation and Development (OECD) drove increases in global demand for petroleum products in recent years. In aggregate, non-OECD countries consumed more petroleum products than OECD countries for the first time in 2014. Global distillate consumption tends to rise as developing countries show robust economic growth because their economies tend to be driven by industry and manufacturing rather than services. Distillate consumption can slow if economic growth expectations decline or as more countries move towards a more services-oriented economy. As many non-OECD countries continue to develop, their economies tend to be driven by industry rather than services. This trend has led to an increase in global distillate demand, and worldwide consumption of distillate is now the highest of any of the petroleum products.
Gasoline is the most consumed petroleum product in the United States and is used primarily as a transportation fuel. Gasoline consumption is affected by a variety of factors including gasoline prices, disposable income, employment, weather, vehicle miles traveled, as well as regulations on fuel economy.
Distillate is the second-most consumed petroleum product in the United States. In addition to its use as a transportation fuel, distillate is also consumed for heating and power generation purposes. Distillate’s use as a heating fuel drives the seasonal pattern of higher consumption during the winter months. Distillate consumption is affected by economic growth and weather conditions as well as vehicle efficiency and miles traveled of heavy-duty vehicles.
The professional consultants at Onyx Power & Gas Consulting are always ahead of the current issues that may affect energy consumption and pricing. Now is the time to partner with an Onyx professional consultant to discuss energy management and secure energy prices based on today’s stable pricing. Volatility in the energy markets makes it too precarious to take chances. Partner with Onyx Power & Gas in Making Energy Make a Difference!