STOCK MARKET WATCH -- Wednesday, 18 April 2012

[Demeter]

37. LOTS OF AGITATION OVER GASOLINE

$4 gas reinforces trend toward lower U.S. fuel consumption

http://www.washingtonpost.com/business/economy/4-gas-reinforces-trend-toward-lower-us-fuel-consumption/2012/04/17/gIQANm4BPT_story.html?hpid=z5

--As prices have neared and in some cases topped $4 a gallon, drivers have cut their consumption of gasoline to its lowest levels in a decade, driving less and buying cars that are more fuel-efficient. The adjustment has slowed the climb in gasoline prices, which until last week had risen for 10 consecutive weeks...

Gasoline purchases made up 4 percent of total consumer spending last year, notes Mark Zandi, chief economist of Moody’s Analytics. That’s more than the 2.3 percent level when crude oil prices cratered in 1998, but it’s a lot less than the 6 percent level in 1981 when an earlier oil price shock rocked the economy.

“I’ve been surprised, at least so far, that $4 a gallon hasn’t done more damage,” Zandi said. “So far, it doesn’t seem to have done any.” He said the improving job market was one reason. Another is that the warm winter lowered people’s heating bills and balanced out total household energy costs. WHY IS THIS MAN DISAPPOINTED? Republicans could have a difficult time turning gasoline prices into a pivotal election issue. Zandi said, “My sense is that if this is the peak for the year, it fades as a political issue.”

MORE GABBLE AT LINK

Gasoline demand down 6.8 percent year-on-year

http://www.reuters.com/article/2012/04/17/us-usa-gasoline-demand-idUSBRE83G17U20120417

...Consumption was down 5 percent on a four-week moving average basis, the 56th straight weekly decline, according to the report, which covered the week to April 13....