Description of problem:
Using `oc new-app -S <is>` and <id> refers to an non-existent imagestream or image in a disconnected environent it always return an error like this:

"$ oc new-app -S testimagethatdoesntexist
W0104 06:19:27.846414   36235 dockerimagelookup.go:233] Docker registry lookup failed: Get https://registry-1.docker.io/v2/: net/http: request canceled while waiting for connection (Client.Timeout exceeded while awaiting headers)
error: no matches found"

It looks like it always try to look in registry-1.docker.io even if that registry is not listed on any docker config file, e.g: /etc/containers/registries.conf or /etc/sysconfig/docker:

# docker pull registry-1.docker.io/testimagethatdoesntexist
Using default tag: latest
Trying to pull repository registry-1.docker.io/testimagethatdoesntexist ... 
All endpoints blocked.

# cat /etc/containers/registries.conf
# This is a system-wide configuration file used to
# keep track of registries for various container backends.
# It adheres to TOML format and does not support recursive
# lists of registries.

# The default location for this configuration file is /etc/containers/registries.conf.

# The only valid categories are: 'registries.search', 'registries.insecure', 
# and 'registries.block'.

[registries.search]
registries = []

# If you need to access insecure registries, add the registry's fully-qualified name.
# An insecure registry is one that does not have a valid SSL certificate or only does HTTP.
[registries.insecure]
registries = []


# If you need to block pull access from a registry, uncomment the section below
# and add the registries fully-qualified name.
#
# Docker only
[registries.block]
registries = []


# cat /etc/sysconfig/docker
# /etc/sysconfig/docker

# Modify these options if you want to change the way the docker daemon runs
OPTIONS=' --selinux-enabled       --log-driver json-file --log-opt max-size=2M --log-opt max-file=3 --ipv6=false --signature-verification=False'
if [ -z "${DOCKER_CERT_PATH}" ]; then
    DOCKER_CERT_PATH=/etc/docker
fi

# Do not add registries in this file anymore. Use /etc/containers/registries.conf
# instead. For more information reference the registries.conf(5) man page.

# Location used for temporary files, such as those created by
# docker load and build operations. Default is /var/lib/docker/tmp
# Can be overriden by setting the following environment variable.
# DOCKER_TMPDIR=/var/tmp

# Controls the /etc/cron.daily/docker-logrotate cron job status.
# To disable, uncomment the line below.
# LOGROTATE=false

# docker-latest daemon can be used by starting the docker-latest unitfile.
# To use docker-latest client, uncomment below lines
#DOCKERBINARY=/usr/bin/docker-latest
#DOCKERDBINARY=/usr/bin/dockerd-latest
#DOCKER_CONTAINERD_BINARY=/usr/bin/docker-containerd-latest
#DOCKER_CONTAINERD_SHIM_BINARY=/usr/bin/docker-containerd-shim-latest
ADD_REGISTRY='--add-registry registry.kvm.local --add-registry registry.redhat.io'
BLOCK_REGISTRY='--block-registry all'
INSECURE_REGISTRY='--insecure-registry 10.36.0.0/16'

root      43352      1  2 00:11 ?        00:00:06 /usr/bin/dockerd-current --add-runtime docker-runc=/usr/libexec/docker/docker-runc-current --default-runtime=docker-runc --authorization-plugin=rhel-push-plugin --exec-opt native.cgroupdriver=systemd --userland-proxy-path=/usr/libexec/docker/docker-proxy-current --init-path=/usr/libexec/docker/docker-init-current --seccomp-profile=/etc/docker/seccomp.json --selinux-enabled --log-driver json-file --log-opt max-size=2M --log-opt max-file=3 --ipv6=false --signature-verification=False --storage-driver overlay2 --mtu=1450 --add-registry registry.kvm.local --add-registry registry.redhat.io --block-registry all --insecure-registry 10.36.0.0/16

Version-Release number of selected component (if applicable):

$ rpm -q docker
docker-1.13.1-88.git07f3374.el7.x86_64

Tested in:

OCP v3.10.83 and v3.11.51

How reproducible:
Always

Steps to Reproduce:
In a disconnected/offline environment:

1. In a disconnected environment: `oc new-app -S testimagethatdoesntexist`

In a non-disconnected environment:
1. Either block registry-1.docker.io in /etc/containers/registries.conf or add a bogus ip for registry-1.docker.io in /etc/hosts
2. Restart dnsmasq: `systemctl restart dnsmasq.service`
3. `oc new-app -S testimagethatdoesntexist`

Actual results:
W0104 06:19:27.846414   36235 dockerimagelookup.go:233] Docker registry lookup failed: Get https://registry-1.docker.io/v2/: net/http: request canceled while waiting for connection (Client.Timeout exceeded while awaiting headers)
error: no matches found

Expected results:
It should not look in registry-1.docker.io

Additional info:
Looks like a regression bug for: https://bugzilla.redhat.com/show_bug.cgi?id=1398330