Economics
Oil Price Nearing Danger Zone for Weaker Gasoline Demand
- Valero executives see pump price malaise with $80-$100/bbl oil
- So far this year, Americans’ driving thirst looks unquelled
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As gasoline pump prices near an average of $3 a gallon across the U.S., Americans have shown little restraint in their fuel purchases. But demand destruction could emerge if oil hits $80 a barrel, Valero Energy Corp. said Thursday on its first quarter earnings call.
Valero’s not worried about gasoline consumption, for now: Demand to drive trucks and SUVs is in tact, executives said, and the independent refiner opted to route gasoline and diesel to Florida instead of exporting it in the first quarter due to sweeter economics.