The Energy Information shows us that gas in July was the lowest it had been since June 2004. The combination of a soft economy and better fuel efficiency is contributing to a lower demand. The lower demand for gas means gas prices get to go up. Post resource – Gasoline demand going up in small increments by Vehicle Deal Expert.
Drop in gasoline demand
Gas and oil demand dropped throughout 2008. Because it dropped, gas prices went up to $ 4 and more. There were more fuel efficient and hybrid vehicle created during this time. Fuel efficient automobiles are still being made although there has been more of a demand since late 2009. In the winter, more oil is needed for heating so the demand for oil is more than the demand for gas.
U.S. Oil production
There is a strong connection between U.S. oil production and gas prices. About 28 percent of the daily requirement of oil in the United States is met domestically, though the shutdown of offshore oil production is starting to trickle down. There have to be more imports now since oil is being produced less.
More summer driving
There has been a rise in oil demand because of summer vacations requiring more driving. More individuals will drive longer distances this summer, reports the Automobile Association.
Fuel comparisons in the U.S.
The U.S. uses one of the most fuel. With the demand China has, they’re second but could beat the U.S. and become first soon. Gas can cost up to $ 8 per gallon in European countries that have taxes. Fuel efficient vehicles will probably become more popular with supply decreases.
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