Global Oil Markets, US Demand and the Impact of Hurricane Katrina

Global Oil Markets, US Demand and the Impact of Hurricane Katrina

  • 13 November 2005

This year, residential space-heating expenditures are
projected to increase for all fuel types compared to
last winter. However, fuel expenditures for individual
households are highly dependent on local weather
conditions, the size and efficiency of individual
homes and heating equipment, as well as thermostat
settings. Total US energy demand is projected to
decline from 25.2 quadrillion British Thermal Units
(Btu) in the third quarter of 2005 to 25.1 quadrillion
Btu in the fourth quarter due to hurricane-related
destruction and higher energy prices. Total energy
demand is projected to increase by 0.3 percent
between 2004 and 2005, compared with 1.5 percent
from 2003 to 2004, while demand growth is projected
to rebound in 2006. However, energy market
projections are subject to considerable uncertainty.
Price projections are particularly uncertain, because
small shifts in either supply or demand, which are
both relatively insensitive to price changes in the
current market environment, can necessitate large
price movements to restore the balance between
supply and demand.

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Sunday 13 November 2005

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Sunday 13 November 2005

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