diesel fuel & jet fuel demand as economic indicators
The trend in diesel fuel and juet fuel demand continue to support our view that economic growth in the U.S. remains on track although growth has been slower than we would all like to see. In Q2 2011, demand for diesel fuel was 50 thousand-bpd higher than in Q2 2010 -- a year-to-year increase of 1.3%. However, within Q2, demand fell 0.5% below 2010 volumes in April but was 3.8% above 2010 levels in June. We expect demand will post an increase of 3.25-3.75% for Q3 2011 but we look for slower growth in Q4.
Similarly, demand for jet fuel posted an increase of 2.4% for Q2 2011 versus 2010. We had concerns when jet fuel demand in Q1 2011 fell 1.5% below 2010 levels. The rebound in demand growth in Q2 is an encouraging sign and reinforces the positive signal from continued albeit slower growth in diesel fuel demand.
