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Drivers still aren't rushing to fill their tanks
Source: Agencies |
May 25, 2010, Tuesday
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DATA released yesterday by the Federal Highway Administration show the number of miles driven on U.S. roads rose in March compared with February, but still was below March 2009, in the depths of the recession.
There is no sign of anything more than a modest increase in demand for gasoline so far this year. Last week's MasterCard SpendingPulse report showed consumption of gasoline for the first two weeks of May running about 1.3 percent ahead of last year. For the year, consumption has risen about 1 percent.
Demand is 4 percent below 2007 levels, according to the MasterCard data, which tallies total gas sales paid by credit card, checks and cash.
Drivers are logging about the same number of miles as they did in 2005. Analysts say the stubbornly high unemployment rate, muted consumer confidence and, until recently, rising gasoline prices have held back driving and gasoline demand.
"The market is jittery and fundamentally weak and that has translated to discretionary gasoline use," said oil analyst and trader Stephen Schork. "It is a tenuous situation out there."
Retail gasoline prices fell again yesterday as this month's big drop in oil prices continues to work its way to the pump.
The national average pump price fell 0.8 cents to US$2.793 per gallon, according to AAA, Wright Express and Oil Price Information Service. That's down nearly 14 cents from the May 6 price of US$2.93. Prices have dropped below US$2.50 per gallon in some areas.
Gas prices are 37.5 cents higher than a year ago, but the gap is narrowing quickly.
In its weekly report on retail gasoline prices, the Energy Information Administration said pump prices last week averaged US$2.786 a gallon nationwide. Drivers on the West Coast paid the most. The average for a gallon of unleaded regular in California was US$3.05. The cheapest gas was in the Midwest, where pump prices fell 11 cents from last week to US$2.69 a gallon.
Efforts continue to control and clean up the oil spill in the Gulf of Mexico. The spill has not affected prices or interfered with tankers carrying imported crude to Gulf ports or those taking refined products to other parts of the country.
Oil prices, which have fallen more than 19 percent since hitting an 18-month high of US$87.15 per barrel just three weeks ago, rose slightly yesterday. Benchmark crude for July delivery gained 17 cents to settle at US$70.21 a barrel on the New York Mercantile Exchange.
In other Nymex trading in June contracts, heating oil added 0.26 cent to settle at US$1.8993 gallon, and gasoline rose 0.96 cent to settle at US$1.9708 a gallon. Natural gas fell 1.8 cents to settle at US$4.017 per 1,000 cubic feet.
The Brent crude July contact in London fell 51 cents to settle at US$71.17 on the ICE futures exchange.
There is no sign of anything more than a modest increase in demand for gasoline so far this year. Last week's MasterCard SpendingPulse report showed consumption of gasoline for the first two weeks of May running about 1.3 percent ahead of last year. For the year, consumption has risen about 1 percent.
Demand is 4 percent below 2007 levels, according to the MasterCard data, which tallies total gas sales paid by credit card, checks and cash.
Drivers are logging about the same number of miles as they did in 2005. Analysts say the stubbornly high unemployment rate, muted consumer confidence and, until recently, rising gasoline prices have held back driving and gasoline demand.
"The market is jittery and fundamentally weak and that has translated to discretionary gasoline use," said oil analyst and trader Stephen Schork. "It is a tenuous situation out there."
Retail gasoline prices fell again yesterday as this month's big drop in oil prices continues to work its way to the pump.
The national average pump price fell 0.8 cents to US$2.793 per gallon, according to AAA, Wright Express and Oil Price Information Service. That's down nearly 14 cents from the May 6 price of US$2.93. Prices have dropped below US$2.50 per gallon in some areas.
Gas prices are 37.5 cents higher than a year ago, but the gap is narrowing quickly.
In its weekly report on retail gasoline prices, the Energy Information Administration said pump prices last week averaged US$2.786 a gallon nationwide. Drivers on the West Coast paid the most. The average for a gallon of unleaded regular in California was US$3.05. The cheapest gas was in the Midwest, where pump prices fell 11 cents from last week to US$2.69 a gallon.
Efforts continue to control and clean up the oil spill in the Gulf of Mexico. The spill has not affected prices or interfered with tankers carrying imported crude to Gulf ports or those taking refined products to other parts of the country.
Oil prices, which have fallen more than 19 percent since hitting an 18-month high of US$87.15 per barrel just three weeks ago, rose slightly yesterday. Benchmark crude for July delivery gained 17 cents to settle at US$70.21 a barrel on the New York Mercantile Exchange.
In other Nymex trading in June contracts, heating oil added 0.26 cent to settle at US$1.8993 gallon, and gasoline rose 0.96 cent to settle at US$1.9708 a gallon. Natural gas fell 1.8 cents to settle at US$4.017 per 1,000 cubic feet.
The Brent crude July contact in London fell 51 cents to settle at US$71.17 on the ICE futures exchange.
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