Why has gasoline demand fallen off a cliff?

[wheaties]

http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=a103600001&f=m

I read a couple articles over the holiday that said the plunge in oil prices is more from falling demand than from increased supply. So I did a little looking and found the data cited above. I know cars are getting better mileage but does that account for the total decrease? There are certainly not less cars on the road, at least in So. Cal.

 

[Banjo]

http://www.advisorperspectives.com/dshort/updates/Gasoline-Sales.php

 

[ScottColeFTA]

I think it is more a global economic story...while the U.S. economy appears to be humming along, the rest of the world looks pretty bleak. The question is, will that global weakness spill over to the U.S.

 

[wheaties]

If you are referring to the chart, it is for US retail sales only.

 

[murray t turtle]

http://www.advisorperspectives.com/dshort/updates/Gasoline-Sales.php

Thanks;
my first choice would not be a gov chart. That agency is waaaaaay off in thier gasoline forcast; but , in fairness,the price trend has been down in oil + gasoline more so than many thought...................................................................

 

[smili]

Here's one article on US oil consumption.
http://ourfiniteworld.com/2013/01/31/why-is-us-oil-consumption-lower-better-gasoline-mileage/

It identifies several factors impacting gasoline including better gas mileage and fewer miles driven. (Some of that may be from layoffs and less people working/driving since the financial crisis. I read another recent story on a study linking reduced labor force participation rate as impacting this also.)

 

[loyek590]

in the 21'st century, probably no past observations will hold true, due to changing demographics. For thousands of years people have bred and fought off starvation. That is no longer the case. People live longer, so the population is older, and they have fewer children, so there is no longer a fresh supply.

 

[Turveyd]

I thought it was all just manipulation to kill of there old enemy before she gets to strong again, that being Russia the Oil prices are bankrupting the entire country yet again.

 

[loyek590]

I thought it was all just manipulation to kill of there old enemy before she gets to strong again, that being Russia the Oil prices are bankrupting the entire country yet again.

and just exactly who is it that is powerful enough to manipulate the price of Crude?

 

[Turveyd]

and just exactly who is it that is powerful enough to manipulate the price of Crude?

NATO and anyone in the USA's pockets which is most!