True, gasoline demand has fallen in the U.S. but not world demand for oil which most of the price of gasoline is based on. Demand for oil is basically flat. Oil went up disconnected from supply and demand and has come down disconnected from supply and demand. It's hard to sustain manipulation of an industry this large with the vagaries of our world economy.
I don’t believe that demand hasn’t dropped overseas. The whole world is in a recession and there are more reports nearly every day that China has cut back. Look at the BDI as an example as how demand has fallen off a cliff for transporting goods. Europe is in a recession, Japan, US is in a recession. Many, many others are already in one but just haven’t formally declared it. Keep in mind though that while demand had been going up 2-3% so has production and if demand goes up just .5 or is flat, you have a much larger comfort zone. Plus—We’re just getting started on this world wide recession. I see oil at $40 a barrel or less by Feb/March.