. The combination of a soft economy and better fuel efficiency is contributing to a lower demand. This lower demand is causing, and being compounded by, rising gasoline prices.
Demanding gas dropped
In 2008, demand for oil and gas dropped. This drop in demand coincided with $ 4 a gallon or higher gas prices. There were more fuel efficient and hybrid car created during this time. By late 2009, the trend had reversed, though interest in fuel efficient cars continues to rise. There is more of a demand for oil than there is for gas considering fuel for heating is needed in the winter.
Oil in the U.S.
The price of gasoline is tied closely to the production of oil within the United States. Although offshore drilling being shut down has hurt this number, typically 28 percent of U.S. oil production is met inside the country. There have to be more imports now since oil is being produced less.
Summer Driving increase
Summer driving has made the demand for oil lately go up. More people will drive longer distances this summer, reports the Automobile Association.
Fuel within the U.S. being compared
The U.S. uses the most fuel. China is the second-largest consumer of gasoline, but demand in China is quickly rising to levels that could make it first. Gas can cost up to $ 8 per gallon in European countries that have taxes. Since supply is going down while demand goes up, numerous individuals will have no other choice then to switch to fuel efficient vehicles.
