We discussed the current situation/outlook for the gasoline market in our latest podcast, but here is Reuters:
“Gasoline demand in the first two months of 2017 was down 2.1 percent from a year ago, according to the U.S. Energy Information Administration. The U.S. gasoline market accounts for roughly 10 percent of global oil consumption, so American motorists have outsized influence over the global petroleum supply.”
We talked about a lifestyle change of people not going out as much (per capital miles driven is below all time highs and Netflix and Domino’s pizza are doing quite well…) but Reuters suggests another reason for weak demand this year:
“Analysts and refiners blamed the drop in gasoline demand to unusually bad weather in California and Texas, states with the highest U.S. driving volumes. California’s rainfall in January and February was more than double the amount in the same period last year, according to the U.S. National Oceanic and Atmospheric Administration.”
However…
“The American Automobile Association projected that 34.6 million people will drive 50 miles (80 km) or more from home during the end-of-month holiday period, most since 37.3 million in 2005.”
And this…
” U.S. vehicle miles traveled on U.S. roads were up 1.5 percent from last year through the first three months of 2017, according to the U.S. Department of Transportation. Analysts said higher fuel efficiency standards are starting to take hold, which could mean U.S. gasoline demand will peak soon.”
Do read the whole thing…
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