Gasoline Declines From Record High

The average price of a gallon of unleaded gasoline has declined over $2.00 during the course of the last 4+ months. As the below chart notes, we are approaching levels seen in September 2001.

• This decline in gasoline prices represents a savings of over $300 billion in gasoline costs for consumers. This is equivalent to a tax cut of the same amount.

• U.S. driving mileage is running 89 billion miles per year less now than it was a year ago. The price decline represents only a 1.3% decline in total U.S. oil use.

• The total decline in U.S. oil use is running roughly 5% according to the EIA. As a result, the difference between the 1.3% and 5% must be a result of less driving by individuals and/or less use by trucking companies.

(click to enlarge)

Source: Chart of the Day

Source:

Less Driving and Lower Gas Prices are Not the Important Factor
Energy Investment Strategies
By: Jim Kingsdale
November 21, 2008
http://www.energyinvestmentstrategies.com/2008/11/21/less-driving-and-lower-gas-prices-are-not-the-important-factor/