In The Driving Seat

25 May 2018; 

Memorial Day weekend marks the beginning of the “summer driving season” in the U.S.  In addition to the traditional burgers and hot dogs on the grill, gasoline prices typically start sizzling as well.  There is generally a seasonal uptick in gasoline demand and prices, for a variety of reasons.  Although improved cars, all-weather tires and better roads mean that people can easily travel much of the year, traditionally, still more people hit the road in the summer.  School vacations exacerbate this trend.  The difference between peak gasoline demand in the summer and the low point of the year, which is generally in January, is about 1 million barrels per day, according to the EIA (see figure 1).  This trend has not materially changed over the years and the initial indications are that 2018 will follow the same pattern.

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