U.S. retail gasoline demand fell 2.7 percent last week as prices rose to their highest level this year, MasterCard Advisors’ SpendingPulse report showed Tuesday.
Average gasoline demand fell by 255,000 barrels per day, to 9.182 million bpd, in the week to Dec. 10.
Demand was 1.3 percent lower than year-earlier levels.
Over the latest four weeks, U.S. gasoline consumption was 0.3 percent lower year-over-year.
Average retail gasoline prices went up 9 cents, to $2.96 a gallon, according to MasterCard.
This is the highest price and sharpest increase this year. Gasoline prices were 13 percent higher than those a year earlier. MasterCard Advisors estimates retail gasoline demand based on aggregate sales activity in the MasterCard payments system coupled with estimates for all other payment forms including cash and checks. MasterCard Advisors is a unit of MasterCard Inc.
Which confirms what some of us have always believed: Gasoline (Oil) prices ARE NOT dictated by supply and demand, it is merely GREED!
The law of “supply and demand” only works in a society and market which does not have the influence of government controls and manipulation. I believe the most remarkable thing about the drop in demand is that the consumer is “telling” the market by its actions that it will cut back on use if the prices get over a certain level.
I think that is why the public simply stopped all unncessary driving when the prices went over $3.50 a few years ago. The producers, who of course are trying the manipulate their profits and prices, found that they had to back off artificial prices that they established when the consumer said, “keep your gas” and “shove it”. (or store it, as the case may be).
Meanwhile, Obama continues to stand in the way of producing our own gas and oil.