The graph below shows US petroleum consumption since 1995. Demand peaked in March 2007 and the decline since then is quite obvious – it is now back down to 2004 levels. Remember how everyone used to say demand is inelastic? It will be interesting to see how long the decline continues. Will it cause a drop in prices or will rest-of-world demand keep the price up, or will supply increases come online in time to prevent further decline?
Related news articles:
- Driving Less, Americans Finally React to Sting of Gas Prices, a Study Says, NY Times, June 19, 2008.
- Prices Curtail U.S. Gasoline Use, Wall Street Journal, June 20, 2008.
- Gas demand may have topped off, Bloomberg, June 19, 2008.
- With gas prices soaring, Americans driving less, Associated Press, June 19, 2008.
- Gas May Finally Cost Too Much, BusinessWeek, April 23, 2008.
- Short-Term Energy Outlook, US Energy Information Administration.
Tags: Gasoline price
