TW: This is a fairly amazing chart. It displays US gasoline consumption, which continues to lag despite gasoline retail prices falling back the lower levels to which Americans have become addicted. Gasoline demand is impacted not only by individual habits but commercial demand (trucking etc.). There is inertia to the numbers (i.e. folks having gotten rid of the gas guzzlers in '06-'07 and not yet replacing them) but the decline supports underlying economic weakness.When this number turns back around, I would expect oil prices to follow quickly right back up. Supplies remain constrained, investment in new supply limited; but for now demand contraction is hiding a looming challenge.
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