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Holiday Week Gasoline Demand Plunges To Lowest On Record
While Americans were purchasing stuff they don't need with money they don't have to impress people they don't like in the holiday week (but making sure to keep those tags off - you don't get record gift returns if you damage the product or rip the tags off), it appears they did so by walking everywhere. Either that or when it comes to determining real consumer purchasing power, the real answer lies at the pump. According to MasterCard, U.S. gasoline demand sank 14 percent from the prior week to the lowest level in more than seven years of records, as reported by Bloomberg. "Drivers bought 8.16 million barrels a day of gasoline in the week ended Dec. 30, down from 9.46 million the week before, according to MasterCard’s SpendingPulse report. MasterCard’s data goes back to July 2004." So we have just had the lowest gas demand week on record, and that's with gas still at relatively low prices considering what has happened with WTI. One wonders what will happen to end demand when prices finally trickle through. Or perhaps this is all just the central planners' insidious plan to get everyone in America to buy Government Motors magically exploding electrical fire hazard bumper cars? The people demand to know.
From Bloomberg:
Fuel use fell below a year earlier for the 18th consecutive time last week, slipping 3 percent from 2010 levels. Fuel demand over the previous four weeks was 3.4 percent below a year earlier, the 41st consecutive decline in that measure. “We observed a noticeable week-to-week drop in gasoline consumption as many drivers were off the roads due to the holidays,” John Gamel , a gasoline analyst and director of economic analysis for SpendingPulse, said in the report. The week began on Christmas Eve.
Of course the imminent spin is just how many more iPad aps the American consumer can buy with all the extra money "saved" from actually walking for a change. Should be good for at least 10 ES points, which courtesy of 1.000 correlation will send Crude at least $1 up higher...
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OT - plunge protection in place as BAC magically rises to save the indexes.....who needs gas to do that?
The Fed is trying everything to keep the asset bubble inflated. Unless the US Federal Reserve buys everything in the entire world it won't have it's way, Saturation with debt and stuff. The only people wanting you to have more debt and stuff are the banksters/Federal Reserve.
Walking and biking is much more entertaining. After a while you start to understand how Ford Prefect mistook the automobile as the dominant life form on the planet.
Seems the land of the free are slaves to the 20 commute to get anywehre. And now they are going broke, what a shame.
fewer people driving to work ...
i'll bet r > 0 for persons laid off and distance of commute. it just makes sense.
Visa is taking market share from Mastercard whose number of gasoline related transactions declined.
OK...according to Mastercard. I for one am not a defender of the establishment, but MASTERCARD might not be the best eprson for this.
In NY, where I live, I have seent he difference between cash and credit prices as much as $.30 per gallon. How many people are now fillin gup using cash???? I know I am. Are those people being counted for data like this?
Tyler, I would never challenge you (all of you), but please do address this.
Thanks
I know I am a directly involved "statistic" in this one.
I switched from M/C to cash for gas purchases.
I am a pay-cash-only customer.
I don't know of any gas stations that offer discounts for cash around here... otherwise, I'd hit them up (the cash discounts would be better than the rewards points on the CC).
Where r u MM? I've seen it in the NE, Florida and California.
Mastercard may not have complete data, and some people may pay cash for the discount (I don't, because the credit card points usually average it out), BUT
If you want any evidence that gasoline is largely down, just look at consistent (with the exception of one week) builds in crude, gasoline and distillate stockpiles in the US during the month of December. Crude stockpiles always get drawn down big-time in December for tax purposes......but not this year. When you see crude and gasoline builds in Nov / Dec, that means gasoline use is down and the the refiners don't want to produce any more gasoline, hence the builds in crude. The US is a net exporter of gasoline now.
The common belief around here is $200 oil, but I will take the other side of that trade. It is probably a 50-50 shot. War in Iran, price will go up (temporarily), economic realities come through, price will plummet.
Short of war, I think it will be a very, very bad year to be long oil.
Johnson promised independence from foreign oil imports.
Nixon promised independence from foreign oil imports.
Ford promised independence from foreign oil imports.
Carter promised independence from foreign oil imorts.
Regan promised independence from foreign oil imports.
bush Sr. promised independence from foreign oil imports.
Clinton promised independence from foreign oil imports.
Bush Jr. promised independence from foreign oil imports.
Now the teleprompter has delivered! What's not to like?
You guys must just like to complain ....
Get out the bicycle.
It's getting greener by the day.
Rockefeller promised DEPENDENCE on foreign oil...
Reduction? Yes. Independence? No. Never happen due to domestic demand for oil for non-fuel use such as plastics, fertilizers, chemicals and certain industrial lubricants that can't be sythensized.
Regan was Reagan's Secretary of the Treasury of course.
AND when this came out the market goes jumping up.........for.......what........reason.......... This is bullish how???
Just the normal Europe markets close, so time for the FED to throw U.S. equity levers full forward....its what TYRANNY looks like!
Enjoy these days, theyll soon be looked back on as 'the good ol days'....can you imagine?
bikes
people ride them online to shop, too!
I understand the skiing sucked on the East and West Coasts.
It's almost been water skiing weather one day, then suddenly plunging into the low teens at night.
http://images.piccsy.com/cache/images/picc-d6rallbm8-204845-497-656.jpg
While Americans were purchasing stuff they don't need with money they don't have to impress people they don't like in the holiday week
LOL, +infinity
I spent the holiday weekend cooking for my parents, betting on football, and paying down my debt.
*New Normal*
Each Volt sold by GM cost 250k$ for taxpayers.
http://www.michigancapitolconfidential.com/16192
Enjoy!
Bullish on Vasolene!!!
Lower demand perhaps due to several factors: increased online shopping, full(er) tanks going into shopping season - thus less purchased during shopping season, planned shopping excursions (people in vehicle, distance driven, number of trips to fill list), marginal increases in fuel efficiency, improved traffic control systems
It was the weirdest thing. The gas gauge on my car was broken. It almost said empty then all of a sudden said full. It made me feel like I was a banker going through german bank files.
Or maybe it's because less Americans are using MasterCard? This number is only worthwhile if we know the ratio of gasoline purchases to all other MasterCard purchases and then compare ratios with earlier years.
We can all read the ole rope barometer. UPS trucks are as rare as hen's teath on my street. Even during the holidays.
We are deflating.
Gas prices just jumped 10 cents in Montreal. Average price there is now 1.35-1.38$ CDN per liter. That would be around 5.52$ a gallon. Opinions up here is when gas gets to over 2.50$ a liter is when the economy will start shutting down. At that price I would have to walk everywhere, or get myself a donkey and a cart.
I drive a Dodge Intrepid, and the damn thing costs me 45$ a week in gas, and i', only a part time worker. Soon I will have to ditch this rust bucket, and get a smaller car, and a scooter for the summer. Only way i will survive without going hungry or bankrupt...
I looked for an item the other day at Northern Tool and found what I needed for $18.99. For grins and giggles I looked to see who else had the same item. Wouldn't ya know handy old SEARS had the same item. for $43.00.
Gee, can't imagine why they're going bankrupt.
But some hotshot young MBA "master of the universe" hedge fund import calculated how much the stock price would be juiced by selling the item at $43. The fact that it did not actually sell is an failure of execution of their brilliant insight, a minor detail, and the fault of the sales clerk, store manager, the economy, dumb customers, et al. The important thing is the spreadsheet showed the stock price would skyrocket when the item sold for $43. Not the hedgie's fault the item did not actually sell.
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