The Briefing Room
General Category => Economy/Business => Topic started by: rangerrebew on July 09, 2017, 11:35:20 am
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BofA Stunned By Drop In Gasoline Demand: "Where Is Driving Season?"
by Tyler Durden
Jul 8, 2017 10:04 PM
Exactly six months ago, when oil bulls still held on to some fleeting hope that OPEC may somehow stabilize the crash in oil prices despite the shift in marginal oil production from low-cost OPEC producers to US shale (a hope which is now gone as the just disclosed letter from Andy Hall demonstrates), Goldman noticed something troubling: an unprecedented collapse in gasoline demand. As the firm's energy analyst Damien Courvalin said on February 8, when discussing the 6% fall in US gasoline demand, such a plunge "would require a US recession" and add that "implied demand data points to US gasoline demand in January declining 460 kb/d or 5.2% year-on-year. In the absence of a base effect, such a decline has only occurred in four periods since 1960 during which time PCE contracted."
http://www.zerohedge.com/news/2017-07-08/bofa-stunned-drop-gasoline-demand-where-driving-season
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When I read people are 'stunned', it generally means someone made the wrong prediction and are just CYA now.
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It's my fault: I bought a 2014 Altima a couple of months ago, and my fuel usage is down by 30 percent. My wife uses it for her errands, instead of her car that gets maybe 20 mpg.
And she runs a LOT of errands. Lol