EIA: US Oil Demand Growth Has Picked Up From Sluggish 1Q

U.S. oil demand growth has recovered from the sluggish rate of the first quarter and is on track to show growth the rest of the year, an analyst at the federal Energy Information Administration said Wednesday.

The comments clarify the EIA’s interpretation of weekly data released Wednesday showing U.S. oil demand has actually contracted so far this year, falling 0.2% to 20.6 million barrels a day. Markets are closely watching such data, as strong demand has been the main driver of oil’s long rally to record highs above $60 a barrel.

“Most of the reason demand growth seems to be lower than usual relates to weak first-quarter demand for distillate fuels, and that’s related to relatively warm weather,” said Doug MacIntyre, analyst at the EIA, the statistics arm of the U.S. Department of Energy. “Demand growth since seems to have picked up some for diesel fuel and gasoline.”
Schlumberger