American Automobile Fuel Consumption Debate


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What?!?! so now suddenly Anup is bearish oil? This is the guy who was about to make the the $200 bet before backing down to $80.

Oil is down at $65 now. Worse (or better depending) than that is that front-month gas fell below $5/mmBTU today. Been a long time since gas had a 4-handle. Nat gas as been routed in the market the past few weeks due primarily to record amounts of gas in storage and no real hurricane threat so far this season.

I also heard a stat today that I thought was shocking and lends towards Anup's bearish oil sentiment. Apparently, gasoline consumption for the summer driving season dropped 6% this year over last. Did not seem to be any driver other than price. (I haven't confirmed, but Barron's was cited as the source.) Is the American consumer showing some oil demand elasticity?

As best i can tell, the calendar forwards are not falling as much (i.e. Cal07 gas is still up over $8), but still falling. Just adding my short-term input to Anup's usual long-term view.

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