Active investment management’s weekly magazine for fee-based advisors
American motorists hit the road in record numbers this Fourth of July weekend, helping fuel 2016’s trip toward record annual gas consumption.

Said AAA, “The 43 million travelers during the Independence Day holiday will be the highest on record and 1.3 percent above year-ago levels.”

In its press release regarding travel trends for the four-day Fourth of July weekend, AAA added further dimension to the figures:

  • Independence Day holiday travelers will grow for the sixth time out of the last seven years.
  • The 2016 total will be 10.7 percent above the 2000–2015 average and 12.7 percent above Memorial Day travel volume.
  • The 36.3 million auto travelers will mark the third consecutive year of all-time high auto travelers. Low gas prices remain an incentive for those hitting the road for the holiday.
  • Air travel will show the highest growth by mode as airfares are down 15 percent for the year. The 3.34 million travelers is 17.4 percent above the 2000–2015 average.
  • Travel by other modes (bus, rail, cruise, etc.) will grow by two percent. Rebounding cruise participation is likely offsetting rail and bus modes.
  • Gas prices as of June 20 were 46 cents per gallon below prices from a year ago. Drivers are expected to pay the lowest Independence Day gas prices since 2005 despite record-high fuel demand. (Editor’s note: AAA updated their overview of gas prices on July 5, 2016, saying, “Today’s national average price for regular unleaded gasoline is $2.27 per gallon, which represents a savings of three cents per gallon on the week and nine cents per gallon on the month.”)
  • The broad economic results have started to improve from a weak start to the year and are offsetting a cooling labor market to keep consumer spending strong.

FOURTH OF JULY WEEKEND TRAVEL TRENDS

Low prices at the pump, continued growth in the job market, and robust auto sales have all contributed to the fact that “U.S. gasoline consumption is set to climb to a record this summer,” according to Bloomberg. It recently noted, “Demand, which typically peaks between the Memorial Day holiday in late May and Labor Day in early September, will average a record 9.5 million barrels during the second and third quarters, up from 9.48 million forecast in May.”

U.S. GASOLINE DEMAND FORECAST TO HIT NEW PEAK THIS SUMMER

The U.S. Energy Information Administration (EIA) Short-Term Energy Outlook continues to see 2016 prices for crude oil, gasoline, heating oil, and other energy products remaining well below recent annual trends, but forecasts that 2017 will see significant price increases across the board.

PRICE TRENDS/FORECAST FOR ENERGY PRODUCTS


Manage investment risk better than ever.
Get started – It’s free

About Us
LinkedIn
Share