Petroleum demand dips in the United States

Petroleum demand dips in the United States

American Petroleum Institute has claimed in a report that the demand for petroleum dipped for the second year in a row in the United States.

However, the oil companies in the country continue to generate huge profits as the prices have gone up massively in the recent years.

The report claimed that the total U.S. petroleum deliveries fell by roughly 1 percent to 20.6 million barrels per day. This is down from 20.8 million in 2005 which itself was lower than the figures from 2004.

Citigroup oil analyst Tim Evans spoke about this report: “We’ve entered that era on a worldwide basis where demand is growing more slowly. Oil producers may have priced themselves out of some markets.”

Ron Planting, manager, information and analysis, for API added: “Our figures show modest increases for some products but a decline in overall oil demand. That decline came as airlines continued to find additional ways to economize on fuel, and as industrial users and electric utilities substituted less expensive natural gas for heavy fuel oil.”