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Page added on October 10, 2017

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This Key Data Points At Strong U.S. Oil Demand

Consumption

Gasoline prices haven’t gone up high enough in the U.S. to have any real impact on car buyers choosing more fuel-efficient vehicles. A university study reports that fuel economy in new vehicle purchases is staying flat this year.

Average fuel economy (window-sticker value) of new vehicles sold in the U.S. was 25.3 mpg in September, according to University of Michigan’s Transportation Research Institute. It was unchanged from August and below the 25.5 mpg peak reached in August 2014.

Average fuel economy for September has gone up 5.2 mpg since October 2007, the first month of the monitoring in the study led by the University of Michigan’s Brandon Schoettle and Michael Sivak.

Gasoline and diesel prices have been affected by Hurricane Harvey and may see a similar trend coming from Hurricane Nate. Pump prices went up in late August and early September as Harvey impacted refineries, and caused a pipeline shut down along the East Coast.  

AAA reports that average gasoline prices in the U.S. have come in at $2.51 this week, up from $2.24 a year ago. A month ago, AAA reported average gasoline prices came in at $2.66 a month ago.

Diesel was reported to come in at $2.73 versus $2.37 a year ago.

Vehicle emissions have seen slight reductions this year, with automakers bringing more carbon reducing, efficient technologies to vehicles with internal combustion engines. The University of Michigan Eco-Driving Index (EDI), which estimates the average monthly emissions of greenhouse gases generated by an individual U.S. driver, improved to 0.81 in July 2017, which was down from 0.83 in June 2017.

Car buyers have been leaning toward pickup trucks and sport utility vehicles since the major oil price drop of 2014. Automakers have been making them more fuel efficient, and are giving owners a more comfortable, car-like interior driving experience.

Some auto analysts had expected to see a greater change in fuel economy and emissions figures by now. Electric vehicles are seeing steady growth in sales, hybrids continue to do well, and fuel efficiency has been getting better with each new model year.

While committing to building and launching several new EVs in the coming years, trucks, SUVs, and crossovers continue to stay very popular in the U.S. Automakers such as General Motors, Ford, and Volkswagen, have committed to rolling out new electric vehicles while also investing heavily in new trucks and SUVs.

Prices of a barrel of oil and a gallon of gasoline may stay relatively low in the U.S. for the next several months; and maybe even longer. Gasoline and diesel prices have adjusted to changing conditions and seem to be returning to lower prices.

Car and truck buyers can freely choose performance over fuel economy without much impact yet to their pocketbooks.

By Jon LeSage for Oilprice.com



6 Comments on "This Key Data Points At Strong U.S. Oil Demand"

  1. makati1 on Tue, 10th Oct 2017 10:34 pm 

    In other real news:
    “Home Depot Panics Over Millennials; Forced To Host Tutorials On Using Tape Measures, Hammering Nails” (Dumbed down Americans!)
    “California To Have Harsher Penalty For Pronoun Violations Than For Knowingly Spreading HIV” (LMAO)
    “National Rents Stall For 4th Month In A Row As Multi-Family Supply Glut Takes Its Toll” Gluts everywhere and not a consumer in sight.)
    “How Vulnerable Is The (US) Electrical Grid? This antique is VERY vulnerable.)
    “Trump Embraces The Culture War” (Divide and conquer.)
    http://www.zerohedge.com/

    Slip slidin’ away!

  2. makati1 on Tue, 10th Oct 2017 10:38 pm 

    “This is not the sort of thing you see in a confident, brave, and civilized nation, it’s the sort of stuff you’d expect to see toward the end. It’s the stuff of craven war-mongers, of dishonest cowards, of a totally deranged and very dangerous media…Expect more of all the above as the U.S. empire enters its most devastating phase of collapse. Think about what it might mean for you and your family and prepare accordingly.”

    http://www.zerohedge.com/news/2017-10-10/empire-destroying-wars-are-coming-america-under-trump-part-1

    The US is a process of self destruction that will not end until it is 3rd world or has destroyed the world with nukes.

  3. Anonymouse1 on Tue, 10th Oct 2017 11:49 pm 

    Another piece of oily crap-o-la from Oilprop.com, what a surprise.

    “Average fuel economy (window-sticker value) of new vehicles sold in the U.S. was 25.3 mpg in September, according to University of Michigan’s Transportation Research Institute. It was unchanged from August and below the 25.5 mpg peak reached in August 2014.”

    Couple things.

    One. The methodology the uSgov uses to determine ‘average fuel economy’, is outdated, and highly suspect in its application. Put in plain english, ‘average’ fuel economy in the uS is less than what the uSgov claims. Imagine that.

    Two. Very few amerikans base their trash can purchases on fuel economy, certainly not enough to matter, and abstract, inaccurate metrics like the uSgovs ‘average fuel economy’ hold even less water with uS ‘consumers’. Still not clear why oilprice thinks it’s so important. Few of his fellow citizens do….

    Lastly, if you use the uSgovs ‘average’, and some actual research, you’d learn uS fuel ‘efficiency’, has barely improved…………….in the last 100 years. At some points in time, it even decreased. The model T was advertised at 13-21 mpg, which means the model T would not be out of place with amerikas cutting edge cars and trucks in 2017, at least as far as efficiency goes. The model T may not have come equipped with GPS that tells people how to get to the nearest walmart, or apps to tell them when their tire pressure is low, true. But when it comes to wasting fuel and polluting the environment? The Model T is as modern as anything you can buy today.

    But none of that is what really matters, what does matter, is that y’all keep the drive-shop-consume-sprawl world in business, preferably on credit. And if you have no credit, or anywhere to drive to, then drive anyhow. And why not? Gas is so heavily subsidized in the uS how can you not afford to drive.

    It’s the amerikan way….

  4. Boat on Wed, 11th Oct 2017 4:37 am 

    amous,

    “One. The methodology the uSgov uses to determine ‘average fuel economy’, is outdated, and highly suspect in its application. Put in plain english, ‘average’ fuel economy in the uS is less than what the uSgov claims. Imagine that”.

    Average fuel economy (window-sticker value) of new vehicles sold in the U.S. was 25.3 mpg in September, according to University of Michigan’s Transportation Research Institute.
    Average fuel economy for September has gone up 5.2 mpg since October 2007, the first month of the monitoring in the study led by the University of Michigan’s Brandon Schoettle and Michael Sivak.
    AAA reports that average gasoline prices in the U.S. have come in at $2.51 this week, up from $2.24 a year ago. A month ago, AAA reported average gasoline prices came in at $2.66 a month ago.

    US gov stats were not used. Imagine that.

  5. Boat on Wed, 11th Oct 2017 4:50 am 

    I meant to say the old stats have been revised going back to 2011.

    For model year 2017, the EPA revised its methodology for calculating the window-sticker fuel-economy value for new vehicles. In order to make the data for previous model years comparable with model year 2017 (and future model years), the EPA also retroactively revised the corresponding data for some vehicles in model years 2011-2016. Our calculations incorporate these revisions. For more information, please visit: http://www.fueleconomy.gov/feg/ratings.shtml

  6. GregT on Wed, 11th Oct 2017 12:29 pm 

    “US gov stats were not used. Imagine that.”

    What part of:

    “The methodology the uSgov uses to determine ‘average fuel economy’, is outdated, and highly suspect in its application.”

    Do you not understand Boat?

    Then you go on to quote a government site that states, “For model year 2017, the EPA revised its methodology for calculating the window-sticker fuel-economy value for new vehicles.

    More nonsense.

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