The price of oil continues to surge despite recent reports revealing that fuel demand has actually dropped for the third consecutive quarter in the world’s largest oil consuming nation.
In the first quarter of 2008, overall demand for petroleum products in the US dropped by 1.4 percent whilst oil output continues to rise.
“The first quarter’s decline comes on the heels of three years of flat to declining deliveries,” said Ron Planting, manager, information and analysis, for the American Petroleum Institute.
This lack of demand has not come due to dwindling supplies, with US refineries continueing to churn out record amounts of gasoline with output rising to 8.85 million barrels a day, a 1.5 percent increase compared to first quarter 2007.
Furthermore, the report also shows gasoline stocks in the US have remained 8.5 percent above year-ago levels and more than 6 percent above the five-year average for this time of year.