• The MasterCard numbers for the week are out, showing increases or decreases in demand. Yes, there are flaws in the data, but the overall trend should be accurately reflected. Week-to-week numbers are not a great barometer of anything, because particularly in winter, they can be affected by bad weather one week, whether it was in the current year or the prior year. But the four-week average is more indicative. And in 2011, for the four weeks ended February 25 when everyone in the US is screaming about gasoline prices, the MasterCard data shows that gasoline demand was up 2.6% from the prior year. The similar increases for the four-week periods ending the five prior Fridays were 2.5%, 3.3%, 2.7%, 1.1% and 0.2%. No sign here of demand elasticity based on the fact that gasoline prices are running about 20% more than last year.
• With the snow and ice melted from my neighborhood, I'm able to go out for an early morning run again. No more black ice, so no more oppressive treadmill boredom. And this morning, when it really wasn't all that cold, I counted three or four cars warming up with no driver in the passenger seat. Which means the owner came out (or maybe had one of those fancy "start it from 25 feet away" gizmos) to burn gasoline to get the engine, and the interior, all warm and toasty. Now, the fact is since the demise of the carburetor in the late 80's and early 90's, to be replaced by fuel injection, that long, lengthy cold weather warmup is no longer necessary. So these idling cars were burning oh-so-precious and insanely expensive gasoline for no other reason than because the driver didn't want to get in a cold vehicle. So if gasoline prices are crushing the American dream, why isn't behavior changing?
• And to show you how gasoline price insanity is taking over, read this story from Long Island. (Subscription required for Newsday, so we've turned the story into a .pdf file).  Of course, what's not in here is that Suffolk County's own gasoline costs are going to rise, so any surge in sales tax revenue from higher gasoline prices is not going to be able to cushion that blow. That could put a strain on other government services, all to give a break on the price of gasoline. Is this really the highest priority?

To subscribe or visit go to:  http://www.platts.com