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Economic troubles show in oil demand statistics

GasBuddy Blog -- So how much impact did the recession make on oil demand? Looking at the figures, the recession that began in late 2008 easily dwarfed the economic slowdown after September 11, 2001. In fact, I had to go back to 1999 to find the last month that saw lower demand numbers than what we saw at the start of the 2008 recession, and demand still has not recovered.

September 2008 is when banks went into crisis, Wall Street panicked, and the recession really began. Oil demand (and thus supply) plummeted in September 2008, dropping to 535.16 million barrels, a number not seen since February 1999. It's important to note that February is routinely a month of poor demand, so if we exclude that month, one must go back to July 1995 to see a comparable...

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Submitted Mar 11, 2010 By: PD

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PrepHermit Champion Author New Jersey Posts:3,275 Points:676,480 Joined:Aug 2008	Message Posted: Mar 12, 2010 7:44:54 AM Ignore PrepHermit Report Abuse They're making up for lost time now!
bluzdw Sophomore Author Missouri Posts:121 Points:30,745 Joined:Feb 2010	Message Posted: Mar 12, 2010 7:44:52 AM Ignore bluzdw Report Abuse buy American
Zuman Champion Author New York Posts:1,499 Points:963,090 Joined:May 2005	Message Posted: Mar 12, 2010 7:42:11 AM Ignore Zuman Report Abuse I thought the recession was over and everything is sunshine and lollipops.
Spetsnaz Champion Author Dayton Posts:1,515 Points:537,315 Joined:May 2006	Message Posted: Mar 12, 2010 7:42:09 AM Ignore Spetsnaz Report Abuse Ok, how is spending $$$$ on this, because is it important to note how we did things a decade ago? I pose the question. Todays's markets are being caluculated by supply and demand anyhow so this article just points out speculators trying to get rich on our dime!
Rick01 Champion Author Utah Posts:4,031 Points:1,412,890 Joined:Sep 2005	Message Posted: Mar 12, 2010 7:38:58 AM Ignore Rick01 Report Abuse Who can afford to buy for fun gas right now anyway. I'm lucky to make it to work.
foxups Champion Author Toledo Posts:3,252 Points:645,060 Joined:Feb 2004	Message Posted: Mar 12, 2010 7:38:42 AM Ignore foxups Report Abuse maybe the snow has something to do with that
no_monkey2002 Champion Author Tallahassee Posts:3,788 Points:1,124,165 Joined:Mar 2006	Message Posted: Mar 12, 2010 7:38:12 AM Ignore no_monkey2002 Report Abuse the suppy here and the demand there
ky_commuter75 Champion Author Cincinnati Posts:2,688 Points:998,310 Joined:Jul 2005	Message Posted: Mar 12, 2010 7:32:22 AM Ignore ky_commuter75 Report Abuse and the price did what?
LocalSpyGuy Champion Author Tampa Posts:2,935 Points:613,370 Joined:Nov 2008	Message Posted: Mar 12, 2010 7:31:24 AM Ignore LocalSpyGuy Report Abuse In a world economy, we are affected by demand throughout the world. The economy has recovered faster in Asia (China) and has increased demand for oil thus affecting price.
SUV2009 Champion Author Orlando Posts:1,127 Points:265,090 Joined:Oct 2009	Message Posted: Mar 12, 2010 7:29:14 AM Ignore SUV2009 Report Abuse See something the past numbers do not help.
cv Champion Author Raleigh Posts:10,254 Points:2,290,155 Joined:Oct 2003	Message Posted: Mar 12, 2010 7:29:04 AM Ignore cv Report Abuse New rule for economics......demand down, prices go up.
niceguytx Champion Author Houston Posts:8,958 Points:1,748,750 Joined:Sep 2005	Message Posted: Mar 12, 2010 7:27:13 AM Ignore niceguytx Report Abuse Maybe in the US, but not China and India.
thedennis64 Champion Author Ohio Posts:1,015 Points:783,370 Joined:Aug 2003	Message Posted: Mar 12, 2010 7:26:51 AM Ignore thedennis64 Report Abuse Oil prices have a lot to do with the economic troubles in the first place.
jppezz Champion Author New Mexico Posts:3,639 Points:715,180 Joined:Jun 2008	Message Posted: Mar 12, 2010 7:26:31 AM Ignore jppezz Report Abuse It is called price manipulation driven by the speculators.
turbosaab Champion Author Cleveland Posts:9,122 Points:1,436,715 Joined:Sep 2006	Message Posted: Mar 12, 2010 7:24:30 AM Ignore turbosaab Report Abuse This article just restates the obvious. But if demand is so depressed, why are prices so high?
MUSTANGSRUS Champion Author Ontario Posts:4,738 Points:1,000,170 Joined:Sep 2006	Message Posted: Mar 12, 2010 7:20:57 AM Ignore MUSTANGSRUS Report Abuse An industry totally out to lunch. Demand is down, so cut supply, then raise the prices. No amount of explaining from those involved will have the ring of truth. It is the almighty dollar, or Euro or whatever currency that rules the roost. Get rid of oil in the commodity markets.
RocketGeek Champion Author Grand Rapids Posts:5,610 Points:1,136,035 Joined:May 2005	Message Posted: Mar 12, 2010 7:19:50 AM Ignore RocketGeek Report Abuse So if the demand is low, why is crude on the high side?
gasandgoAL Champion Author Alabama Posts:1,941 Points:612,430 Joined:Sep 2008	Message Posted: Mar 12, 2010 7:19:31 AM Ignore gasandgoAL Report Abuse I agree with everyone. no job no need for gas. that doesn't seem to matter to the spectulators. continue to conserve. maybe we can wait them out
Hangnail309 Champion Author Manitoba Posts:1,434 Points:759,640 Joined:Aug 2006	Message Posted: Mar 12, 2010 7:19:20 AM Ignore Hangnail309 Report Abuse The old laws of supply and demand do not seem to apply to the price of oil ...
PurduePete86 All-Star Author Indiana Posts:910 Points:639,540 Joined:Apr 2007	Message Posted: Mar 12, 2010 7:18:26 AM Ignore PurduePete86 Report Abuse there has been a paradigm shift in the price of oil. People are used to $2 so we will never see the $1.75 range again despite lowest demand in a decade. The oil companies have found out the price that the market can bear. [Edited by: PurduePete86 at 3/12/2010 7:20:05 AM EST]
TomT2Lee Champion Author Cincinnati Posts:3,470 Points:1,091,790 Joined:Sep 2005	Message Posted: Mar 12, 2010 7:18:04 AM Ignore TomT2Lee Report Abuse It is a nice fantasy Masercal. Too bad the reality of it is about as far off as the Earth is from Uranus.
Valricoslash Champion Author Tampa Posts:1,778 Points:394,345 Joined:Nov 2008	Message Posted: Mar 12, 2010 7:17:48 AM Ignore Valricoslash Report Abuse Nothing like a good depression to slow oil demand.
rocket_ron Champion Author Grand Rapids Posts:1,413 Points:1,040,965 Joined:Jul 2006	Message Posted: Mar 12, 2010 7:17:31 AM Ignore rocket_ron Report Abuse Supply and demand do not apply to oil.
biza4u Champion Author New Haven Posts:3,616 Points:658,480 Joined:Jan 2007	Message Posted: Mar 12, 2010 7:17:27 AM Ignore biza4u Report Abuse Can't dispute raw data
BigdaddyMA Sophomore Author Massachusetts Posts:159 Points:138,340 Joined:Oct 2008	Message Posted: Mar 12, 2010 7:16:04 AM Ignore BigdaddyMA Report Abuse When things start to improve the powers that be just screws things up so that things wind up back in the dumpster......
Don1222 Champion Author Michigan Posts:6,215 Points:763,980 Joined:Jul 2008	Message Posted: Mar 12, 2010 7:15:03 AM Ignore Don1222 Report Abuse People out of work do not buy as much fuel.
Masercal Champion Author Michigan Posts:3,610 Points:780,740 Joined:Oct 2007	Message Posted: Mar 12, 2010 7:14:51 AM Ignore Masercal Report Abuse Continue to conserve and make the move to renewable and alternative energy today.
WonderfulMI Champion Author Michigan Posts:5,860 Points:810,400 Joined:Jun 2008	Message Posted: Mar 12, 2010 7:12:17 AM Ignore WonderfulMI Report Abuse Oil is high because we were willing to pay high prices in the summer of 2008. That peak established the "fair price" that consumers were willing to pay. The relaxation of financial regulation for the previous years had lead to this, and about half the country supported these reductions of regulations. The end result saw high prices, and consumers wiling to pay those high prices. We had been living in a fools paradise, where everything was high priced, and many people mistook that for a boom economy. In reality, prices were just high. The real estate market was vastly overvalued. The oil market was also overvalued. Financial investments we vastly overvalued. But many people believed out leaders at the time when they claimed that this showed progress. We could have had similar progress if we had just taken in each other's laundry for very high prices.
Eichhornchen Champion Author Detroit Posts:2,731 Points:533,890 Joined:Feb 2009	Message Posted: Mar 12, 2010 7:10:54 AM Ignore Eichhornchen Report Abuse Yes, Wegman, why is oil so high?
adr47 Champion Author Saskatchewan Posts:2,406 Points:539,495 Joined:Nov 2008	Message Posted: Mar 12, 2010 7:09:48 AM Ignore adr47 Report Abuse Speculators Keeping Prices Up
CSharpGuy Champion Author Colorado Springs Posts:4,564 Points:926,635 Joined:Jan 2008	Message Posted: Mar 12, 2010 7:06:24 AM Ignore CSharpGuy Report Abuse There are some evil forces involved here.
wegman Champion Author Twin Cities Posts:2,918 Points:1,127,755 Joined:Jun 2001	Message Posted: Mar 12, 2010 7:05:25 AM Ignore wegman Report Abuse In fact, I had to go back to 1999 to find the last month that saw lower demand numbers than what we saw at the start of the 2008 recession, and demand still has not recovered. So why is oil so high?
mlhog Veteran Author Minnesota Posts:289 Points:165,110 Joined:Oct 2009	Message Posted: Mar 12, 2010 7:04:33 AM Ignore mlhog Report Abuse dito no job no drive.
Bou Champion Author Maine Posts:6,374 Points:1,704,640 Joined:Jan 2005	Message Posted: Mar 12, 2010 7:02:57 AM Ignore Bou Report Abuse Prices will fall again, when fuel prices start affecting the economy which will happen soon enough.
Cheymike Champion Author Wyoming Posts:1,121 Points:180,825 Joined:Sep 2009	Message Posted: Mar 12, 2010 7:02:50 AM Ignore Cheymike Report Abuse Demand means nothing any more. We are simply fed lies for reasons for prices to go up and UP they go!
TeachR06 Champion Author Raleigh Posts:3,535 Points:1,012,760 Joined:Sep 2006	Message Posted: Mar 12, 2010 7:01:03 AM Ignore TeachR06 Report Abuse Common sense, if you don't have a job, you don't drive. If you don't have money, you don't take trips or drive around. The choice is food on the table or gas.
TerryLee Champion Author Ohio Posts:11,387 Points:2,143,965 Joined:Mar 2004	Message Posted: Mar 12, 2010 7:00:32 AM Ignore TerryLee Report Abuse Then gas should be going down....
weenerdog Champion Author Detroit Posts:4,933 Points:941,895 Joined:Jan 2008	Message Posted: Mar 12, 2010 7:00:17 AM Ignore weenerdog Report Abuse what about the optimism from the previous article?
danno27 All-Star Author Miami Posts:798 Points:424,385 Joined:Jun 2006	Message Posted: Mar 12, 2010 6:59:36 AM Ignore danno27 Report Abuse Laws of supply and demand work well for all commodities.......except oil/gas.
madison8359 Champion Author Cleveland Posts:2,880 Points:623,135 Joined:Apr 2008	Message Posted: Mar 12, 2010 6:59:25 AM Ignore madison8359 Report Abuse Economy in trouble, fuel demand down, supply up, storage facilities filled to overflowing, dollar in trouble, yet prices continue to go up. It is either the unions or the speculators. This is bizarro world!
NJColt Champion Author New Jersey Posts:7,850 Points:1,673,555 Joined:Aug 2005	Message Posted: Mar 12, 2010 6:59:21 AM Ignore NJColt Report Abuse The ONLY truth is, THEY have their mind up at what profit THEY want to make, and fact is absolutely nothing else affects the price. NOTHING!
tankneverfull Champion Author Charlotte Posts:4,237 Points:829,495 Joined:Apr 2008	Message Posted: Mar 12, 2010 6:58:30 AM Ignore tankneverfull Report Abuse It also shows elsewhere but then again those prices aren't rising just because they can.
MertieMan Champion Author Lexington Posts:9,832 Points:1,919,285 Joined:May 2005	Message Posted: Mar 12, 2010 6:58:21 AM Ignore MertieMan Report Abuse Yes one thing makes sense every spring now, and that is the oil companies and speculators with investors resort to more and more legal stealing.
abuck Champion Author Pittsburgh Posts:3,288 Points:590,170 Joined:Jul 2008	Message Posted: Mar 12, 2010 6:55:19 AM Ignore abuck Report Abuse nothing really makes sense anymore
fightbigoil71 Champion Author Milwaukee Posts:2,780 Points:593,160 Joined:Nov 2008	Message Posted: Mar 12, 2010 6:51:11 AM Ignore fightbigoil71 Report Abuse Higher prices on lower demand? So what is driving the price? Speculation & greed...
BazooQC Champion Author Montreal Posts:4,761 Points:678,430 Joined:Oct 2008	Message Posted: Mar 12, 2010 6:50:29 AM Ignore BazooQC Report Abuse Hindsight is easier to piece together what happened. Forecasting what will happen is a little more difficult. So oil demand went down and gas prices went UP!
RichardoB Champion Author Fayetteville Posts:2,971 Points:1,067,185 Joined:Jun 2007	Message Posted: Mar 12, 2010 6:49:11 AM Ignore RichardoB Report Abuse I guess the author of this blog hasn't heard that demand is rising and economic recovery is here. At least that's what the oil speculators are saying.
Grismer Champion Author Kitchener-Waterloo Posts:3,702 Points:766,290 Joined:Apr 2008	Message Posted: Mar 12, 2010 6:48:40 AM Ignore Grismer Report Abuse The ashes still haven't settled from the global economic collapse as far as consumers are concerned. The actions by oil producers, distributors, refiners, and market speculators to keep prices as high as possible during this critical period have only served to delay any meaningful recovery in oil demand.
mark1962 Champion Author Albany Posts:1,521 Points:330,695 Joined:Sep 2009	Message Posted: Mar 12, 2010 6:47:04 AM Ignore mark1962 Report Abuse I would guess that some is due to lowering consumption from conservation, that was shown in the oil crisis in the 70"s
nb52 Champion Author Grand Rapids Posts:2,877 Points:580,015 Joined:Nov 2008	Message Posted: Mar 12, 2010 6:46:39 AM Ignore nb52 Report Abuse Yeah, but this time we have a pro-growth, business friendly administration,unlike the Carter administration....oops, I'll be right back.
minnesotagirl Champion Author Milwaukee Posts:1,167 Points:286,165 Joined:Oct 2009	Message Posted: Mar 12, 2010 6:46:27 AM Ignore minnesotagirl Report Abuse I am tired of paying so much for gasoline.
tco0102 Champion Author Charleston Posts:3,721 Points:965,760 Joined:May 2007	Message Posted: Mar 12, 2010 6:45:30 AM Ignore tco0102 Report Abuse I hope some of the lower demand is related to conserving.