U.S. weekly gasoline dipped 0.3% to 8.978 million barrels a day in the week ended Sept. 24, according to a SpendingPulse report by MasterCard Advisors LLC, a division of MasterCard Inc. (MA). The 28,000-barrels-a-day drop put demand at a four-year low for the week.Based on declining demand for gasoline, you may be thinking that it is safe to short oil with impunity. However, you have to remember that Fed money printing has massively distorted the market to the point where it is no longer a free market--just central bank interventions. No wonder gold is at a new all time high.
Demand was down 194,000 barrels a day, or 2.1%, from a year earlier. It was the third straight weekly drop and biggest year-to-year fall in three months, since the week ended June 25.
In the last four weeks, demand averaged 8.99 million barrels a day, the lowest level since the four weeks ended Nov. 14, 2008. The drop of 0.7%, or 60,000 barrels a day, from a year earlier was slim, but it was the biggest decline since July 9.
Black Swan Insights