HFI Research

HFI Research

Share this post

HFI Research
HFI Research
US Oil Demand Starts To Respond To Lower Prices
Copy link
Facebook
Email
Notes
More

US Oil Demand Starts To Respond To Lower Prices

HFI Research's avatar
HFI Research
Dec 29, 2022
∙ Paid
3

Share this post

HFI Research
HFI Research
US Oil Demand Starts To Respond To Lower Prices
Copy link
Facebook
Email
Notes
More
Share

The oil price band theory we talked about back in June is starting to kick in. There is a caveat, however, oil prices have retraced the entire rally to where we basically started the year. So for oil bulls to take comfort in this fact, we would need to see demand continue to improve as prices inch higher.

For those of you that have read our OMFs in the 2nd half of the year, you will have noted that we repeatedly said the weekly demand figures in the EIA oil reports are flawed. While EIA has the tendency to understate total implied oil demand, the gasoline, jet fuel, and distillate demand trend has been somewhat accurate. Notice how we said trend here and not the absolute figure.

In the latest dataset, you can see the sudden jump in the 4-week average. Demand has surprised to the upside the last few weeks, and with the help of colder-than-normal weather, demand surprised to the upside.

But the key figures, in our view, are the big 3: gasoline, distillate, and jet fuel.

This post is for paid subscribers

Already a paid subscriber? Sign in
© 2025 HFI Research
Privacy ∙ Terms ∙ Collection notice
Start writingGet the app
Substack is the home for great culture

Share

Copy link
Facebook
Email
Notes
More