Demand for Oil

The demand for oil in the United States is showing no signs of slowing down. In fact, it’s quite the opposite.

The bad news – global demand is on the same pace.

With many oil producing countries in decline, new supply has been slow coming to market causing the beginning of a drastic increase in the price of barrel of oil. The following graph, adjusted for inflation, shows just that:

China & India Demand

Growth in the Chinese and Indian economies has helped push world oil prices to record highs and most analysts suggest that this is not just a “passing phenomenon.” Within China, government price adjustments have helped consumers with the jump in energy costs. How long China can subsidize their consumers, no one knows. The IEA estimates that China and India will account for 40 percent of worldwide growth in oil demand this year. This graphic shows just how the economic growth in China is affecting overall worldwide demand: