Oil demand is markedly different in the old world, which refers to the U.S., western Europe and Japan; and the new world, which is identified as the rest of the world, according to Ed Yardeni.
Crude oil use in the old world has slipped back to the recession lows of 2009, while demand in the new world surged to 51.5 million barrels per day last year, according to Yardeni. New world oil demand grew 2.8% in 2011, compared with a 1.2% decline in the old world. In fact, new world oil demand now exceeds old world demand by 36%.
Unsurprisingly, oil demand was the lowest in Western Europe, falling to the lowest level since the end of 1994.
Here's a chart from Dr. Ed's Blog that shows the different trajectories that old and new world oil demand are on.
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