Gas Demand Keeps Dropping but Prices Steady

Futures Magazine analyzed why Gas prices are steady inspite of gasoline demand continuing to fall.

The market news is quoted as saying:

The first reason is Quantitative Easing. QE has weakened the dollar and kept crude prices higher and it has also led to a demand surge in the emerging market place. Money seeking yield invests and so the US has become an exporter of gasoline which has kept our prices high. In other words, while our demand is falling it is spiking in other parts of the world. The US is not the only game in town when it comes to gasoline consumption and we are starting to see that impact at the pump.

The news quoted another reason:

 The other reason is the high price of Brent Crude. While WTI, or West Texas Intermediate, has been weak due to weak demand and a backlog in Cushing, Oklahoma, Brent crude has stayed stubbornly above $100 a barrel. That strong price, due in part to falling North Sea production, has kept gas prices high. Because gas is becoming more of a market influenced by demand in other parts of the globe we are feeling the impact of the Brent crude price.

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