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US Gasoline Demand Is Surging AKIN OYEDELE JAN 9 2015, 1:59 AM...

  1. buc
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    US Gasoline Demand Is Surging

    AKIN OYEDELE JAN 9 2015, 1:59 AM

    As oil prices have plunged, US gas demand has soared, something that seemed unlikely just a few years ago.

    According to Morgan Downey, CEO of Money.net, ”A few years ago people were saying that US oil demand had peaked and would never recover – some called it ‘peak demand.’”

    In an email to Business Insider, Downey said the recent surge in demand is unusual because oil has a low price elasticity of demand, meaning that demand is not very sensitive to changes in price.

    “Now with gasoline at almost $US2/gallon on average nationwide, US gasoline demand has not only recovered, but is at all time seasonal highs and likely to be at a record high throughout 2015.”

    “This 2014 demand rally is a little unexpected and shows that oil consumer behaviour changes during 2008-2013 were temporary and not permanent like many claimed they would be,” Downey wrote.


    Here is Downey’s chart showing gas demand in 2014 compared to its 10-year range.

    http://www.*.com.au/us-oil-demand-recovery-2015-1
 
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