Industry: Gasoline demand slackened in late 2007

Houston Chronicle ^ | Jan. 17, 2008 | DAVID IVANOVICH

[thackney]

Gasoline demand dipped about half a percentage point during the fourth quarter of 2007 and 1.3 percent in December as the U.S. economy slowed and American motorists reacted to higher pump prices, an oil industry trade group said today.

Motor gasoline demand averaged 9.235 million barrels a day, off from 9.283 million barrels a day in the fourth quarter of 2006, the American Petroleum Institute reported. In December, demand dropped to 9.221 million barrels a day, down from 9.338 million barrels a day the previous year.

Typically, when the nation's economy slows, gasoline demand will continue to grow, albeit at a slower pace. But gasoline prices 30 percent higher than a year ago actually helped prompt a decline, trade group officials said.

"Consumers appear to be responding to the higher prices," said John Felmy, the Petroleum Institute's chief economist.

For the year, gasoline demand rose about half a percentage point in 2007 compared with 2006.

[thackney]

U.S. Weekly Finished Motor Gasoline Product Supplied
http://tonto.eia.doe.gov/dnav/pet/hist/wgfupus24.htm

[bicyclerepair]

If only I could find a way to work without using dreaded gas. But alas no buses come near my home or work. And it’s too far to bicycle, and my wife won’t let me get a Piaggio BV500 (the sweetest scooter on the market, 500cc, Piaggio is the parent co. for Vespa).

[mysterio]

Don’t tell me, let me guess : they are going to slow down refinery production in response to the decreased demand.

[thackney]

Gasoline stocks are near the high end of average for this time of year.

Stocks on hand are nearly the same as last year compared to consumption.

Looks like they are keeping demand up with supply.

[thackney]

Whoops

Looks like they are keeping demand up with supply supply up with demand.

[Camel Joe]

I was wondering about that...

[marvlus]

I’ve started carpooling with a neighbor to work. While this would not work for everyone, it works for me. Saves money, plus enjoy the conversation with my carpool buddy to and from work.

[q_an_a]

Not only is demand down, but the BP refinery in the Houston area AND it’s 500,000 gallons of additional production is back on line. BP will need some cash flow to pay for 2 years of rebuilding and 0 sales from the closed portion,during that time.

[Dilbert56]

Most days I now work from home. Thousands of my co-workers do as well. I submitted a suggestion to our company that we sell carbon credits for the fuel these non-commuters are no longer burning. Under “justification” I said: “There’s a fool born every minute and someone might be dumb enough to pay us.”