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  • Writer's pictureRealFacts Editorial Team

Low Consumer Fuel Demand Worries Stock Market Investors

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With gasoline prices rising significantly since last year, summer demand is decreasing. This is causing many investors to believe a small stock-market correction is coming because, as Sevens Report Research editor Tyler Richey put it, “Gasoline demand is being closely watched as a high-frequency proxy for consumer spending,” With gasoline demand dropping for the summer, many believe that this will be followed by a large decrease in consumer spending. Richey continues, “Worries that we could see a similar drop off in economic activity amid the onset of the long-discussed post-COVID-stimulus recession were recently reignited by the combination of stagflationary economic data and the high frequency drop off in gasoline demand,” 

Analysts have attributed this decrease in demand to the destructive effects that inflation has had on the American consumer. A large drop in demand could be brutal on the economy, as Richey puts it, “If we see demand roll over again, expect recession fears to rise and volatility across asset classes pick up, including renewed pressure on oil prices now that the geopolitical fear bid has largely gone stale,”

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