Oil Demand Is Dropping, but Prices Aren't
The buzz in the energy world is that American motorists do finally seem to be responding to high prices and driving less, as reported in the Wall Street Journal (subscription required).
Carbon Tax says the new statistics are "a powerful rebuttal of the notion that gasoline use is inelastic." And the Truth about Cars cites "a shift in both perception and reality" among drivers. Blogging Stocks says "the highly improbable may be happening."
JPMorgan's Global Energy Strategy report notes that the latest figures are the result of the U.S. Energy Information Administration's making a sizable downward revision in its earliest estimates for December 2007 oil demand. Total demand fell 0.4 percent from December 2006 levels, when it earlier had looked as if there had been 2.1 percent year-over-year growth. "On a detrended, deseasonalized basis demand for [gasoline] has not shown consistent above-trend growth since early 2005," JPMorgan notes.
But the chilling news, for both motorists and the U.S. economy, is that both crude oil and gasoline prices are rising anyway.
Tags: gas prices | oil | driving
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Reader Comments
gas
what the hell is wrong with the goverment do they not give a dam if we lose every thing we own the oil excevitives stood up there and lied but it dont matter they said if you mess with us we will make hell it on you they said they will raise the price .so the goverment says ok we wont make wavesits ok go head with it .
Bull shit tax them hard if it was a small person doing that they would put his ass away in prison
gas prices
I think the government needs to do something About hhese oil prices people are straving to death because of itRichard Nixon put a freeze on gas why cant BUSH DO IT TO BEFORE OUR COUNTRY SHUTS DOWN; People in the white house dont have to worry about the price because they can affrod to buy it but people like me have to work for minium wages dont have a chance.When your paycheck goes for gas and then you dont have any left for food Much less for this high dollor medicine because we cant afforsd heath insurance.I think the government employes should have to walk in our shoes for one week and then they would see what poor people are,There is no middle class people any more yoou are either rich or poor it is as simple as that,In my opion i think its time for THE GOOD LORD TO COME BACK.I know our government means well but it does not feed our kida
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