Reportedly, the discussions about imposing limits have picked up in recent days, although there is no indication when the decision might be made. The sources close to the situation claim the limit might be substantial, although the complete ban on exports is out of the question.

The US Energy Information Administration data shows that the United States has been exporting, on average, a total of 755,000 barrels of gasoline a day in 2022. This represents a substantial increase compared to the same period last year when the figure was 681,000 barrels a day.

The government has been weighing several options in an effort to contain the gas prices. Still, there have been no definite moves made yet, and the prices are not expected to come down anytime soon.

Some experts claim that these high gasoline prices might cause “demand destruction.” There are some indicators supporting this theory, as the demand for gas has been down around 2 percent compared to the same period last year.

The post Government Considers Limiting Fuel Export Amid Surging Gas Prices appeared first on theprimarymarket.com.

Demand destruction, common for energy products, occurs when high prices over a prolonged period of time result in a permanent lower demand for a particular product or good.

According to Peter McNally, the global sector lead for consulting company Third Bridge, that is already happening for gas. 

“One could argue that demand destruction for gasoline has already started,” McNally told Yahoo Finance. “Since the start of March, U.S. gasoline consumption is 6% lower than the corresponding period in 2019.”

Andy Lipow, president of consulting firm Lipow Oil Associates, adds that the gas consumption has already dipped two percent compared to the same period in 2021. He expects this trend to continue in the coming months. 

“As prices continue to rise, I expect that the demand will continue to fall off compared to 2021,” said Lipow.

While already breaking records, the gas prices are only expected to go up from here. JPMorgan’s experts recently predicted that a gallon would cost more than $6 nationwide by August. This will likely have an impact on the prices of other goods.

The post Experts Predict “Demand Destruction” Due to High Gas Prices appeared first on theprimarymarket.com.

Reportedly, the discussions about imposing limits have picked up in recent days, although there is no indication when the decision might be made. The sources close to the situation claim the limit might be substantial, although the complete ban on exports is out of the question.

The US Energy Information Administration data shows that the United States has been exporting, on average, a total of 755,000 barrels of gasoline a day in 2022. This represents a substantial increase compared to the same period last year when the figure was 681,000 barrels a day.

The government has been weighing several options in an effort to contain the gas prices. Still, there have been no definite moves made yet, and the prices are not expected to come down anytime soon.

Some experts claim that these high gasoline prices might cause “demand destruction.” There are some indicators supporting this theory, as the demand for gas has been down around 2 percent compared to the same period last year.

The post Government Considers Limiting Fuel Export Amid Surging Gas Prices appeared first on theprimarymarket.com.

Demand destruction, common for energy products, occurs when high prices over a prolonged period of time result in a permanent lower demand for a particular product or good.

According to Peter McNally, the global sector lead for consulting company Third Bridge, that is already happening for gas. 

“One could argue that demand destruction for gasoline has already started,” McNally told Yahoo Finance. “Since the start of March, U.S. gasoline consumption is 6% lower than the corresponding period in 2019.”

Andy Lipow, president of consulting firm Lipow Oil Associates, adds that the gas consumption has already dipped two percent compared to the same period in 2021. He expects this trend to continue in the coming months. 

“As prices continue to rise, I expect that the demand will continue to fall off compared to 2021,” said Lipow.

While already breaking records, the gas prices are only expected to go up from here. JPMorgan’s experts recently predicted that a gallon would cost more than $6 nationwide by August. This will likely have an impact on the prices of other goods.

The post Experts Predict “Demand Destruction” Due to High Gas Prices appeared first on theprimarymarket.com.