According to this Wall Street Journal column written by Carolyn Cui, few market observers believe data from Barack Obama's Department of Energy when it comes to measures of gasoline demand:
If the Department of Energy is to be believed, weekly gasoline demand has fallen 7% on average from a year ago, to its lowest level since 2001.
But few market observers believe it.
Gasoline is the most-used oil product in the country, and data on its usage provide the benchmark for analysts to forecast U.S. energy use, households' income and economic growth.
The Energy Information Administration's weekly report on U.S. gasoline demand has for years been the most-watched measure of gasoline usage. Analysts and economists use it to make projections, and traders use it as a gauge of when to buy or sell.
But many analysts say the recent data are flawed. They say the data suggest American drivers this year, based on the average of weekly figures, have cut back at the pump by 622,900 barrels a day from a year ago, the equivalent of Argentina's entire daily consumption. The U.S. economy is gaining steam, they argue -- nonfarm payrolls rose 1.6% in February -- and while high gas prices probably are eroding demand, it wouldn't be by that much.
Jan Stuart, head of energy research at Credit Suisse Group AG, says: "We refuse to believe that." (snip)
"Historically, it was a very reliable indicator," Mr. Stuart says.
Well..Barack Obama changed history , didn't he?
The Department of Energy, when facing criticism regarding the accuracy of its numbers, naturally blames lack of money for its failure to update poor models and data gathering capabilities.
Ah yes, it always has to do with lack of money in Washington. Here's a thought, how about stop wasting money on Fisker Karma, Solyndra, Ener1, Beacon Power, and the eve-growing list of green energy schemes that have wasted billions of dollars?
This report may raise other concerns. Is the Department of Energy misleading traders, investors, and oil companies in an effort to try to put a lid on gas prices at the pump? Even in the Age of Obama the classic laws of supply and demand still play a major role in pricing. If the DOE is spreading misinformation that gasoline demand is weaker than it really is, companies might be restrained in lifting the price at the pump (hard as that may be to believe as prices are heading to $5 a gallon).
Furthermore, administration officials have been busy touting that this decline in demand is a direct result of the spread of hybrids, electric cars, ethanol usage and other green ventures so beloved by President Obama and his crony capitalist donors.
What if it is all based on the Department of Energy's "faulty" data?
Thomas Lifson adds: If a private firm were found guilty of manipulating price data to achieve a desired market movement, prison sentences would be handed out.
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