The Energy Information Administration’s (EIA) first 2018 petroleum status report showed that despite gasoline demand increasing to 8.8 million b/d on the week, gasoline inventories bubbled up by 4.1 million bbl to measure at 237 million bbl nationally. Total gasoline inventories in the U.S. are now just over 3 million bbl below inventory levels at the same time last year, yet they are 3.4 million bbl above the five-year average. Much of the growth can be attributed to total U.S. refinery utilization holding above 95% last week. However, the high run rate is likely to drop in the coming weeks as demand is expected to drop — impacting how much gasoline is produced — and planned maintenance at some refineries begins.
Demand and Inventory on the Up and Up