US GASOLINE DEMAND FALLS AS FEDERAL INTEREST RATE HIKE BITES, GOLDMAN SACHS SAYS RECESSION DATA


Weekly data points to U.S. gasoline demand falling sharply by 460,000 barrels per day (bpd) year-on-year in January. The slump started after the Federal Reserve announced its second interest rate hike in only ten years on December 14th 2016.

http://www.zerohedge.com/news/2017-02-07/

A chart shows the correlation between the Federal Reserve interest rate hike and the sudden plunge in demand and resulting in a dramatic climb in gasoline stockpiles, which are now at a near record levels.

Petrol stocks climbed a staggering 13% between 12th December 2016 and 27th January 2017 as demand fell.

fed-hike

Goldman Sachs said the data pointed to a recession.

“Enter Goldman which cuts right to the point: “A 6% fall in US demand would require a US recession”

As Goldman analyst Damien Courvalin notes, “implied demand data points to US gasoline demand in January declining 460 kb/d or 5.2% year-on-year. In the absence of a base effect, such a decline has only occurred in four periods since 1960 during which time PCE contracted.”

http://www.businessinsider.com/fed-fomc-statement-interest-rates-december-2016-2016-12

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