Gas/Diesel Usage Drops

WooT! Unfortunately for those who still have to drive a bunch, a drop in demand does not equal a lower price when it comes to fuel. Demand has been down since May, when it was expected to rise with vacation season. The opposite has happened, and prices continue to go through the roof.

Experts aren’t pointing to increased use anywhere in the globe to explain the trend, but say responsibility may lay at the feet of investors. Say the peeps at NATSO:

“markets have attracted a new breed of speculator-non-commercial traders, such as Wall Street investment firms, pension funds, and others who have no involvement with the commodities they are buying and selling and who never intend to take delivery of a barrel of oil. These non-commercial speculators, called “paper traders,” now account for two-thirds of all crude oil trading, double the number active in the markets since the year 2000.”

Are speculators the new whipping boy? I’ve been hearing a lot lately about this jerk selling this, and that jerk selling that. Congress is calling for laws limiting their involvement in the market, and certain experts are calling for il-legalizing the practice entirely. As far as it relates to crude oil, that is. Black gold. Texas tea.

In any event, I’m glad people are finding ways to use so much less. Gasoline dependency down 3% (at a time when it usually goes up!) Diesel is down by almost 6%. Impressive, America. Keep up the good work!

Source: NATSO, National Association of Truckstop Operators

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