Sharp Drop in Gasoline Usage notes EIA, Crude Can’t Hang Onto $90
Oct 9th, 2008 | By Doug Casey | Category: Financial News, Oil Investment & Alternative EnergyIn the energy market Wednesday, crude for November delivery fell back, closing at $88.95/barrel, down $1.11. November reformulated gasoline declined 3.3 cents, to $2.0298/gallon.
In its regular inventory report, the Energy Information Administration said that crude stockpiles advanced for a second week in a row, adding 8.1 million for the week ended October 3, and nearly doubling the previous week’s gain.
Gasoline supplies tacked on 7.2 million barrels, while distillates were off by 500,000 barrels. Refinery utilization continued its hurricane recovery, coming in at 80.9% of capacity, vs. 72.3% a week earlier.
Folks ain’t truckin’ like they used to. Total gasoline demand averaged nearly 8.8 million barrels a day over the past month, down 5.3% from the same time in 2007.
“Even Wal-Mart (WMT) is seeing slower sales, which means there is no traffic … no driving,” wrote John Person, president of National Futures Advisory Service. “This trend of conservation could last for a long time.”
Source: Crude can’t hang onto $90 - EIA notes sharp drop in gasoline usage.
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