The Energy Information shows us that gas in July was the lowest it had been since June 2004. There is a lower demand for fuel with the soft economy and fuel efficiency is better. This lower demand is causing, and being compounded by, rising gasoline prices.
Gas demand drop
In 2008, demand for oil and gas dropped. Because it dropped, gas prices went up to $ 4 and more. 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. In the winter, more oil is needed for heating so the demand for oil is more than the demand for gas.
Producing oil within the U.S.
There is a strong connection between U.S. oil production and gas prices. 28 percent of all oil needs are supplied in the U.S. although that has changed a little since offshore drilling is shut down. Since there is less production of oil in the U.S., more imports have to be brought into the country.
More summer driving
Summer driving has made the demand for oil recently go up. According to the Automobile Association, there can be further road trips taken by individuals this summer meaning more driving.
Comparing fuel use in the United States
The U.S. uses one of the most fuel. China is the second-largest consumer of gasoline, but demand in China is easily increasing to levels that could make it first. In numerous small European countries where fuel-efficient autos are becoming more popular, fuel taxes make the price of a gallon of gasoline as high as $ 8 per gallon. Fuel efficient vehicles will probably become more popular with supply decreases.
