High prices deter US drivers

CGES ANALYST | JANUARY 2012 | SOURCE: Monthly Oil Report

Sales of gasoline and burning fuels in the OECD continue to decline in the face of persistently high oil prices and increasing supplies of natural gas.

US gasoline deliveries fell by 3.7% during the second and third quarters and by 3% in October‐November, and could fall as much this year as they did in 2008 at the height of the recession. 

High prices deter US drivers

Average US retail prices this year are just over $3.50/USG — the highest on record. US gasoline stocks rose by 9 mn bbls in the two weeks to 9 December and are now well above the normal seasonal range.

Gasoline consumption in the US has been declining year on year for the past nine months and, due to its 47% share of aggregate oil demand, it has dragged total US oil product sales down by ‐0.8% year on year for the Jan‐11 to Nov‐11 period.

In an attempt to improve their personal finances, US consumers appear to be curbing inessential trips, particularly since gasoline still costs in excess of $3.50 per USG, which explains to a degree why the US recovery seems a joyless one for oil.

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