In mid-July, the Energy Information Administration reported that gasoline demand was at its lowest since June of 2004. There is a lower demand for fuel with the soft economy and fuel efficiency is better. Gas prices are going up because of the lower demand.

Drop in gasoline demand

Gas and oil demand dropped throughout 2008. 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. The demand for oil involves more than just gasoline, though, as a demand for fuel and heating oil tends to go up in the winter months.

U.S. Oil production

Oil production within the U.S. connects to gas prices. 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

The uptick in demand for oil over the last few weeks has been attributed, partially, to the summer driving system. The American Automobile Association estimates that increasingly more individuals can be choosing to drive further this summer.

United States comparisons with fuel

The largest consumer of fuel is certainly the U.S.. China is the second-largest consumer of gasoline, but demand in China is easily rising to levels that could make it first. In numerous small European countries where fuel-efficient vehicles are becoming more popular, fuel taxes make the price of a gallon of gasoline as high as $ 8 per gallon. Since supply is going down while demand goes up, many people could have no other choice then to switch to fuel efficient vehicles. by NadineA.