US Oil Demand Drops Sharply During A Period Of Good Economic Growth

Oil prices usually decline when there is a recession because demand drops. What's interesting is that in the US real GDP growth for 2005 was 3.6% and 2006's will likely turn out to be about the same. Yet use of oil in the US dropped 27% in 2006.

http://www.businessweek.com/ap/financialnews/D8MOESLG0.htm

In the U.S. -- still the world's largest energy consuming nation -- residual fuel oil deliveries experienced the steepest decline, falling nearly 27 percent to 673,000 barrels per day as industrial and electric utility facilities made major shifts to natural gas, the report said. Jet fuel demand declined by 2.8 percent to 1.6 million barrels a day, as airlines conserved fuel as best they could.

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