Economic Recovery Seen Boosting Demand for Petroleum
YORK (Dow Jones)--Economic recovery in the U.S. is expected to help fire up U.S. petroleum consumption over the next year as demand growth spurs road travel and freight deliveries.
U.S. gross domestic product grew 7.2% on an annualized basis in the third quarter, the strongest gain in 19 years. For 2004, some private economists expect U.S. GDP will grow by more than 4%. That'll help to bolster the oil industry through 2004, they said.
"Clearly, demand for petroleum will increase," said Anthony Karydakis, senior financial economist at Banc One Capital Markets.
The federal Energy Information Administration raised its U.S. petroleum demand forecast Thursday, saying demand will rise by 1.2% this year from last year's average, to 20 million barrels a day. Demand for gasoline, the largest oil-based product, is expected to rise 1.3% for the year, according to the agency, the statistical arm of the U.S. Department of Energy.
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