WASHINGTON - The drop in U.S. oil demand is expected to continue through next year with annual consumption in 2009 falling below 20 million barrels per day for the first time in seven years, the government's top energy forecasting agency said on Tuesday.
A weak U.S. economy and high energy prices will cut America's oil use this year by some 610,000 barrels per day, or 2.9 percent, compared to 2007, the federal Energy Information Administration said in its latest monthly forecast.
For 2009, oil demand is forecast to keep falling, but not as steep, to 19.99 million bpd, marking four years in a row of declining petroleum consumption and the first time demand would dropped under 20 million bpd since 2002, the EIA said.
Lower oil demand in the United States, which accounts for almost one in every four barrels of oil consumed globally, is on the minds of OPEC ministers meeting this week in Vienna.
Some OPEC members have called for cutting production in light of declining petroleum use to keep crude from falling under $100 a barrel.
However, OPEC's president said the producer group will likely not change output.
That is welcome news to the United States where consumers are enjoying a break from soaring gasoline prices that hit a record $4.11 a gallon in July, but will face heating oil prices above $4 a gallon this winter.
U.S. refineries are also recovering from the disruption in supplies caused by Hurricane Gustav and more big storms are forecast over the next two months.
"I believe that we're going to be better served if OPEC concludes...that they're not going to make any changes and I think that is the right answer," U.S. Energy Secretary Sam Bodman told reporters on Tuesday when he was asked about the OPEC president's comments on keeping output steady.
"I'm pleased that they have decided to keep markets well supplied," he said.
Bodman cited lower oil demand and high petroleum inventories as reasons for OPEC to maintain current production levels.
U.S. consumers are changing their driving habits by buying more fuel-efficient cars, combining trips and taking public transportation.
"I think that we clearly are declining in our usage of oil," he said. "And I think that it is fair to say that looking at inventories that we're starting to see some turnaround and improvement in the inventory situation."
Still, the EIA said it expects OPEC "will lower crude oil production over the next few quarters in order to prevent a sharp decline in prices."
A weak U.S. economy and high energy prices will cut America's oil use this year by some 610,000 barrels per day, or 2.9 percent, compared to 2007, the federal Energy Information Administration said in its latest monthly forecast.
For 2009, oil demand is forecast to keep falling, but not as steep, to 19.99 million bpd, marking four years in a row of declining petroleum consumption and the first time demand would dropped under 20 million bpd since 2002, the EIA said.
Lower oil demand in the United States, which accounts for almost one in every four barrels of oil consumed globally, is on the minds of OPEC ministers meeting this week in Vienna.
Some OPEC members have called for cutting production in light of declining petroleum use to keep crude from falling under $100 a barrel.
However, OPEC's president said the producer group will likely not change output.
That is welcome news to the United States where consumers are enjoying a break from soaring gasoline prices that hit a record $4.11 a gallon in July, but will face heating oil prices above $4 a gallon this winter.
U.S. refineries are also recovering from the disruption in supplies caused by Hurricane Gustav and more big storms are forecast over the next two months.
"I believe that we're going to be better served if OPEC concludes...that they're not going to make any changes and I think that is the right answer," U.S. Energy Secretary Sam Bodman told reporters on Tuesday when he was asked about the OPEC president's comments on keeping output steady.
"I'm pleased that they have decided to keep markets well supplied," he said.
Bodman cited lower oil demand and high petroleum inventories as reasons for OPEC to maintain current production levels.
U.S. consumers are changing their driving habits by buying more fuel-efficient cars, combining trips and taking public transportation.
"I think that we clearly are declining in our usage of oil," he said. "And I think that it is fair to say that looking at inventories that we're starting to see some turnaround and improvement in the inventory situation."
Still, the EIA said it expects OPEC "will lower crude oil production over the next few quarters in order to prevent a sharp decline in prices."
