Gasoline demand up for second week: SpendingPulse

TORONTO (Reuters) - U.S. retail gasoline demand rose for the second week in a row as falling retail price spurred consumer demand, according to the SpendingPulse report issued Tuesday.

Demand still trailed year-ago levels, but was down only 1.2 percent, the smallest drop since April, according to the report from MasterCard.

American motorists pumped an average of 9.203 million barrels per day in the week ended November 21, up 1.9 percent from the previous week.

"We have seen consumer driving habits return to somewhat normal levels over the past six weeks," said Michael McNamara, vice president of research and analysis at MasterCard Advisors.

McNamara said the Thanksgiving holiday skews the demand numbers as demand drops in the beginning of the week and then picks up dramatically on Thursday, the day of the holiday.

"You have to take the next two weeks together," he said.

The 1.2 percent drop against year-ago levels was the lowest decline in seven months. The four-week moving average for gasoline demand was also lower, down 3 percent from a year ago.

National average prices slid 15 cents or about 7 percent to $2.01 per gallon, near levels seen in March 2005.

McNamara said prices are down about 35 percent year-on-year, adding that the national price threshold is nearing $2 a gallon for the first time in about three and a half years.

Meanwhile, a Reuters poll showed energy analysts forecasting the Energy Information Administration would report that gasoline stocks rose 400,000 barrels in the week to November 21. The analytical arm of the Department of Energy will release its weekly report on Wednesday.

MasterCard Advisors estimates retail gasoline demand based on aggregate sales activity in the MasterCard payments system coupled with estimates for all other payment forms including cash and checks. MasterCard Advisors is a unit of MasterCard Inc.

(Reporting by Janet McGurty; Editing by John Picinich)