Shrinking oil demand shows near-term US economic slump

Supply of petroleum products in the U.S.A. has dropped below the 18 million barrels per day level for the first time since June 2009, according to the data released by the U.S. Energy Information Administration.

U.S. weekly petroleum products supply has shifted around 19 million bpd after 3Q 2009, despite the petroleum demand used to stay above the 20 million bpd level before the Lehman Shock.

Petroleum demand in the U.S. had partly rebounded after the global economic crisis led the U.S. petroleum consumption to below the 18 million bpd level in 2Q 2009.

But recent data suggests that the another round of slump in the petroleum demand has offset the recovery from 2Q 2009 entirely.

We have seen a series of improved U.S. economic indicators recently.
Meanwhile, supply of petroleum products had increased in the second half of October and the first half of November.

I think the economic recovery data reflected the rebounded petroleum consumption.
Then, falling petroleum demand in the last couple of weeks may generate worse economic indicators in the near term.

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