People aren’t buying enough gas… CNBC

April 25, 2017 by Jim Colburn Leave a Comment

Here is the gist of the CNBC piece on gasoline demand:

”Demand for U.S. gasoline has recovered since January, but remained below 2016 levels throughout much of this year. Now, analysts are worried weak consumption will cause gasoline stockpiles to keep building and eventually result in weaker crude oil demand and pricing.”

However the EIA already estimates a slightly lower number for gasoline consumption in 2017 than 2016 (9.30 vs. 9.33 mbd)… The EIA estimates world consumption growth for 2017 at +1.5 mbd… We will certainly be watching gasoline demand very closely as the season unfolds, but zero demand growth in US gasoline does not necessarily mean lower prices…

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