Eurodollar University The World Isn't Prepared for What Just Happened to Oil
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Dec 12, 2025 Falling gasoline prices may not signal relief for consumers; instead, they hint at weak demand and worsening affordability. The upcoming oil spike in 2024 could trigger significant economic challenges. A global crude surplus is emerging, driven by low demand, while shifts in WTI futures point to recession warnings. U.S. gasoline usage remains stagnant, reflecting this weak demand. Declining real incomes and increasing layoffs further exacerbate the economic landscape, suggesting a rough road ahead.
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Cheap Gas Signals Demand Collapse
- Falling gasoline wholesale prices signal collapsing demand, not relief for consumers.
- Jeff Snider argues low gas reflects an affordability crisis driven by weak incomes and jobs.
Seasonality Broken By Weak Demand
- Seasonal patterns should push gasoline higher in December, yet prices are hitting multi-year lows.
- Snider links that anomaly to persistent weak demand and a fragile economy, not improved fundamentals.
Monitor Eurodollar Signals
- Watch eurodollar and credit market signals for early warnings about monetary tightening.
- Jeff Snider invites listeners to a webinar to learn how these signals affect markets and policy.