The markets look at these numbers and expect prices to remain relatively stable. But there is an underlying growth story here. A story driven by the inability of world oil production to keep pace with world demand. And a story that could send oil prices soaring in the coming years… To understand that story, we first need to understand what factors drive oil demand and prices… What Drives Oil Demand? Economic growth has the largest impact on demand for oil – namely transporation as a result of economic growth.
The best example of this is the United States.
We are the largest consumer of oil and one of the most developed countries on earth. Almost 70% of oil in the U.S. is used for transportation . About 25% of oil use is industrial. And a very small portion of demand is for residential, commercial, and electric power.
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