Gas Demand Continues To Wane, Has OPEC Screwed Their Golden Goose?

U.S. retail gasoline demand fell again last week as the price of the fuel remained higher than a year earlier, MasterCard said in its SpendingPulse report on Wednesday.

Demand dropped 2.5 percent compared with the corresponding week last year, the data showed.

High prices forced motorists to cut back on all but essential driving. A gallon of gasoline was 23.2 percent more expensive year-on-year, even as costs at the pump fell 6 cents a gallon from the week before to $3.40, MasterCard said.

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Joe_Limon - 10/14/2011 12:03:54 PM

-3 Boost

With fewer cars being sold, and each new generation being more and more fuel efficient, I'm finding all the doomsday fuel forecasts rather silly.

monster - 10/14/2011 12:30:00 PM

+1 Boost

I guess the cash for clunker is working afterall.

veyron1001 - 10/15/2011 12:23:34 PM

+1 Boost

Do you really think that they would sell local gas cheaper? Use your brain.

DrtyEuro - 10/15/2011 2:20:58 PM

+4 Boost

Price of oil is not based only on supply and demand its mostly based off oil speculation.

uaw_lax - 10/16/2011 9:42:59 AM

+4 Boost

GREED

I95SPEEDINGTICKETS - 10/14/2011 6:08:07 PM

0 Boost

And what will you do if he is not voted out ?

Kill yourself ?

You need to really get over yourself, this is an AUTO-ENTHUSIAST SITE; Not a political blog.

uaw_lax - 10/16/2011 9:44:49 AM

-3 Boost

Are you listening 009? Give the users what they really want cars not your political view.

PUGPROUD - 10/16/2011 8:43:50 AM

+1 Boost

It will be years before OPEC will be brought to its knees but when it is it will be ugly for them and likely well deserved. Unfortunately I'll
be too long gone to see it !

mini22 - 10/16/2011 1:28:06 PM

+1 Boost

Most vehicles regardless of size are more fuel effecient then they were even 2 yrs ago.Ford is pushing it's Ecoboost engines in it's trucks and SUV's. I think that may have more of an impact then the increase in small car sales.People in these country still like large cars.Therefore the idea of a large vehicle that gets significantly better fuel mileage will resonate with a lot of people. EV's will one day be more prevelent. However it will not happen until
1) The price to buy is in line with current gas vehicles.
2) The range between recharges is 250 miles or better.
3) The time it takes to recharge needs to be cut to 10 to 15 minutes max
at public charging stations.
4) The number of public charging stations needs to dramitically increase.
Once this happens sales of EV's will skyrocket and Opec will be on it's knee's.

cdoke - 10/17/2011 6:55:19 PM

+1 Boost

When the price of crude was high in 2008, a lot of studies were conducted pertaining to speculation. The role of speculation on prices?: essentially none at all. It has to do with the fact that demand is not completely price inelastic. The factors that shape the price of crude oil are very complex. Crude prices- which dictate gasoline prices (with about a 1 month lag- the crude spot price is considered indicative of the ~1 month futures price for gasoline) really are shaped by fundamental economic forces- it is just a little more complicated since oil companies produce a heterogeneous resource, operate under a fixed stock constraint and there really is no supply curve so to speak.

Second, foreign oil independence is an IDIOTIC pipe-dream that would make gasoline more expensive and less secure (ever heard the words "Force Majeure"?). There is a reason that we import oil from foreign countries- hint: think price not supply.