Slowing Demand Dampens Oil Price Recovery Prospects

Oil prices are under pressure as demand worries mount, despite increasing production and rising rig counts.

Analysts believe that any oil price recovery may take a year or more to materialize due to slower-than-expected demand growth.

U.S. drivers have covered fewer miles than expected this summer, and the overhang of gasoline in storage may put downward pressure on crude and refined product prices.

According to John Paisie, executive vice president at Stratas Energy Advisors, 'the only thing that would drive prices higher is robust demand,' which must be across the board for various products, including distillates like diesel and jet fuel.