After nine straight months of growing demand vs year ago numbers,the EIA reported on Friday that November was the third straight month where demand was below last year. November’s demand was 19.37 million barrels per day vs 19.19 mbd in November 2014 according to the EIA’s now closely watched final monthly numbers as reported in the Petroleum Supply Monthly. Light product demand basically cancelled each other out in November with gasoline gaining 0.19 mbd and distillate declining by 0.21 mbd. No doubt warmer weather in November contributed towards distillates losses. Weather also contributed to losses in NGL and LPG demand which was lower by 0.18 mbd relative to year ago ,almost all of this is propane consumption. So far the weekly numbers for total US consumption show demand above last December’s 19.46 mbd and last January’s 19.25 mbd figures, but we would not be surprised in the least if the final December and January numbers come in lower than year ago-extending the losing streak to five months. Record warm weather plus tepid economic growth will probably lead to downward revisions by the EIA. While the petroleum markets have been ravaged by supply, flagging US demand is not what the market needs right at this particular juncture. (US monthly total demand is shown on table below,numbers are in thousands of barrels per day)
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