Reuters reports that U.S. demand for oil fell 800,000 barrels per day (bpd) during the first half of 2008 compared with the same period a year ago. This was the biggest volume decline in 26 years according to the Energy Information Administration (EIA). You can see the EIA's report and outlook here.
In its latest monthly energy forecast, the EIA said the huge drop in demand was due to slower U.S. economic growth and the impact of high petroleum prices.
The drop in U.S. oil demand helped offset a 1.3-million bpd increase in petroleum consumption in nonindustrial countries during the first half of the year.
As a result, preliminary data shows that global oil consumption rose by 500,000 bpd in the six-month period, the EIA said.
The Energy Department's analytical arm sees continued falling oil demand, and for the first time is predicting that U.S. petroleum consumption in 2009 will be lower than this year, which would mark a drop in annual demand for three years straight.
Gas prices have also been falling according to the EIA's website and the AAA's Fuel Gauge Report. However, as the AAA's site indicates gas prices are still over a $1 above prices from a year ago. This means the trend of high gas prices remains high and that so far gas prices are probably just falling because the peak summer driving season has passed.
