Fuel demand has decreased following a recent surge in fuel consumption throughout the summer, pointing to potential economic recovery challenges.
From mid-April to late June, increasing numbers of vehicles were on the road, rallying a glut in demand for fuel, bringing relief to major energy providers like Chevron and Exxon Mobil. In the past two-months, the market recovery has come to a standstill as demand flattened, still below pre-pandemic levels.
This points to the longitudinal effects of COVID-19 and its impact on the U.S. economy. As lockdowns began to be lifted across the country, cases have increased in multiple states, leading to further restrictions which have stifled growth in American energy.
The glut in fuel demand is indicative of wider issues in the U.S. economy. It has been displayed that increased fuel consumption generally means greater profits for businesses large and small as more Americans drive around to shop, run errands, etc. A handful of economic analysts argue that the economic recovery will be contingent on fuel consumption.