Higher Crude Prices Impact Demand
By June 2008, the average U.S. consumer kept driving despite the fact that gasoline prices were above the $4-per-gallon mark at the local pump in many areas of the U.S. market. Consumers still needed to commute to work and, for the short term, adjusted personal budgets elsewhere and reduced discretionary spending thereby signaling eminent contraction in many consumer industries.
The most telling statistic associated with peak oil prices was the Department of Energy's (DOE) reported approximate 900,000 bpd crude oil demand drop in the second quarter in 2008. Airline, transport, trucking, and railroad companies all decreased jet fuel and distillate (NYMEX heating oil no. 2) fuel use. When commercial and industrial ...
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