Back Behind The Wheel

Memorial Day weekend in the United States signifies to most the unofficial start to the summer season. For those in the gasoline and tanker markets, this weekend symbolizes the kick-off to a period of high demand for petroleum products. The Automobile Association of America tracks the number of travelers driving at least 50 miles from home. During the Memorial Day holiday in 2008, the number of people was 31.9 million. The expectation for this weekend is for the number to increase to 32.9 million. While it may not immediately translate into a broader recovery in refined products demand internationally, expectations of increased travel can be interpreted as small signs of confidence by the American consumer. The chart below shows the historical prices of gasoline, both regular and premium, for the past few years. A weaker price environment at the pump will likely make it more palatable for the American consumer to fuel up.