Gasoline demand “inexplicably rose” last week, which means prices could be going up soon, says GasBuddy.
“While we have no direct reasoning for the rebound, five of seven days last week saw much above the prior week’s gasoline demand, in fact, Friday saw the highest gasoline demand since Labor Day. If demand continues to somehow defy such conventional trends, we may see an end to the possibility of future declines,” said Patrick DeHaan, head of petroleum analysis for GasBuddy.
DeHaan says an increase in demand could become a trend.
“Last week’s gasoline demand according to our Pay with GasBuddy data was the second-highest since March. That certainly defies conventional wisdom,” said DeHaan. “Motorists should beware. With oil prices popping this morning (Monday) and with prices in Indianapolis not having risen in two weeks, that may set us up for a price cycle at some point this week.”
DeHaan advises you to fill up your tank as soon as possible before prices go up. While the exact reason for the increase in demand is hard to pinpoint, DeHaan has some ideas as to why it’s happening.
“Some schools have gone back to the classroom. That could have some insight into why it’s going up. College football is starting to get back. I know they’re not attracting big crowds, but for whatever reason, Americans were hitting the road very briskly this weekend,” said DeHaan.
DeHaan also discussed President Trump’s recent positive coronavirus test and its potential impact on gasoline demand.
“It could (have an impact). It did spook the market last week when President Trump revealed his diagnosis. Oil prices plummeted. The stock market plummeted. But now, part of the reason I think prices are going back up is that charade (by him Sunday). President Trump taking a drive yesterday may have some markets bullish and optimistic that he’s going to improve. But it’s anybody’s guess as to what that will do,” said DeHaan.