Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Fuel Demand Destruction Is Happening at Most Expensive US Spots

Published 06/09/2022, 11:21 AM
Updated 06/09/2022, 11:45 AM
Fuel Demand Destruction Is Happening at Most Expensive US Spots

Fuel Demand Destruction Is Happening at Most Expensive US Spots

(Bloomberg) -- Gasoline demand destruction is happening in parts of the US that are seeing the highest prices at the pump. 

“In terms of demand destruction...we’re starting to see some erosion in volume in the low single-digits,” said Darren Rebelez, chief executive officer of fuel distributor Casey’s General Stores Inc. in a conference call on Wednesday. 

Casey’s, which operates mainly in the Midwest, sees a wide gap between the Chicago area, where prices are approaching $6 a gallon and the other end of the spectrum where gasoline costs nearly $2 a gallon less, Rebelez says. 

In the areas where prices are still in the $4-range, demand is still growing, said Paul Sankey, founder of Sankey Research in an interview on Bloomberg TV. “Demand strength has been a huge feature of why prices are so high,” he said.

Earlier this week, the US Energy (NASDAQ:USEG) Information Administration lowered its forecast for gasoline consumption in the second and third quarters of this year, in part because of high prices. Still, demand rose to highest it’s been so far this year last week, the agency said.

Six-dollar gasoline, however, is “uncharted waters,” Rebelez said.

Regular gasoline rose to $6.048 a gallon overnight in Chicago, a record high, according to autoclub AAA. The national average is pennies away from $5.

©2022 Bloomberg L.P.

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.