Stephanie Yang, WSJ, has a piece here on high gasoline prices caused in part by strong economic growth worldwide:
“That’s a big difference from a decade ago, or even a few years ago,” said Tom Kloza, global head of energy analysis at the Oil Price Information Service. “We’re kind of refiners to the entire Western Hemisphere right now.”
Strong global demand has kept oil prices lifted, as synchronized economic expansion has contributed to increased fuel consumption.
In an April note, Goldman Sachs analysts said January oil demand exceeded expectations by 1 million barrels a day, mainly on the back of strong gasoline and distillate demand growth. According to the report, gasoline demand was up 2.8% compared with last January, despite several winter storms that could have crimped the need for gas.”