Posted on 02/12/2009 4:55:49 PM PST by Danae
Nick Snow OGJ Washington Editor
WASHINGTON, DC, Feb. 11 -- Global petroleum demand will fall by another 400,000 b/d during 2009 as economic conditions worsen, the US Energy Information Administration said on Feb. 10 in its latest short-term energy outlook.
EIA now projects that worldwide oil consumption will drop by 1.2 million b/d this year as a deteriorating world economy and a weak oil consumption outlook keep the market well supplied despite two downward revisions in the last 2 months by the Organization of Petroleum Exporting Countries.
Reduced demand and rising surplus production capacity through at least mid-2009 reduce the possibility for a strong and sustained oil price rebound over that period, the federal energy analysis and forecasting service said.
"OPEC is scheduled to meet in Vienna on March 15, which could lead to another production cut to mitigate some of the slack in the world oil market. However, near-month oil prices will likely be driven primarily by the global economy," it noted.
EIA now assumes that global gross domestic product, weighted according to shares of world oil consumption, will decline by 0.1% in 2009 and rise by 3% in 2010. January's short-term energy outlook assumed 0.6% growth in real GDP in 2009 and 3% growth in 2010.
Domestically, it expects GDP to fall by 2.7% this year, triggering consumption declines for all major fuels. Retail regular gasoline prices are projected to average $1.95/gal nationwide in 2009 and $2.19/gal in 2010.
The US average retail price for gasoline of $1.69 in December was the lowest monthly average since February 2004 and nearly $2.40/gal below the July 2008 monthly peak, according to EIA. "Gasoline prices have been slowly increasing over the last six weeks as crude oil prices have stabilized and refiner margins have recovered from their recent near-historic lows," it said.
"The US economic downturn is also contributing to a decline in natural gas consumption, particularly in the industrial sector, which has led to lower natural gas prices," EIA continued. It said that it expects the Henry Hub spot gas prices to decline from an average of $9.l3 per thousand cubic feet in 2008 to about $5/Mcf in 2009 before increasing to nearly $6/Mcf in 2010.
Contact Nick Snow at nicks@pennwell.com.
Oh no crap about me reading the Oil and Gas Journal. I have my stuffy Academic side too.
Hysteria \Hys*te"ri*a\, n. [NL.: cf. F. hyst['e]rie. See
Hysteric.] (Med.)
A nervous affection, occurring almost exclusively in women,
in which the emotional and reflex excitability is
exaggerated, and the will power correspondingly diminished,
so that the patient loses control over the emotions, becomes
the victim of imaginary sensations, and often falls into
paroxism or fits.
[1913 Webster]
Note: The chief symptoms are convulsive, tossing movements of
the limbs and head, uncontrollable crying and laughing,
and a choking sensation as if a ball were lodged in the
throat. The affection presents the most varied
symptoms, often simulating those of the gravest
diseases, but generally curable by mental treatment
alone. Hysteric
ROFL lol
It appears that the descendants of Ronald Reagan’s own constituents are refusing to remember what he said about “doom and gloom.”
What a stupidly written headline..
They have been brainwashed by the Obamanation.
I agree, but its an academic journal (shrug) Its the content that matters anyway. We are in for some schiznet. Not in a good way either.
Agreed! Well, they’d already been brainwashed by many others like him. Most business now has its connections to big government. Much of that happened during the ‘90s. See mercantilism, oligarchy, plutocracy.
I shamelessly looked at your FR page. ...hope that you will start a small hobby toward starting a business to produce useful things, if you haven’t already done so. We can come out of the slop of decades of bad leadership and be better off, if we try. Threads are frequently posted for the purpose of sharing ideas on saving money, producing necessities and making useful things.
Actually I am a student at American Military University now, so I am working on becoming more of an asset to America. But the future... ah, by the time I am done with school OholyO ought to be gone. He will be a One Termer if I have ever seen one in my lifetime.
Agreed, and you are doing something that is most worthy. Granted, I’m a little biased (tagline). ;-)
Good question - Oil prices have been on a kiddie roller coaster around here... up 3 cents, down one or 2, up 5 cents, down 3, up 10 cents, back down 3... ever inching higher.
There is a reason - but it isn’t tied to “supply and demand”...
OPEC is now a joke. I can just see all the lying arabs gathering to set lower production levels and then cheating on each other to gain market share. Arabs will always do what arabs do best, that’s lie through their teeth.
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