In its latest weekly report, the Energy Information Administration (EIA) revealed that demand for gasoline hit 9.6 million b/d last week. Last week’s rate is approximately 700,000 b/d more than the previous week’s estimate and 500,000 b/d more than the estimate during the same time last year. This rate would be considered average during the busy driving season in the summer, but not typical during winter, which is a typically low demand season. As the rate is an estimate, it’s considered preliminary. Therefore, it’s important to note that EIA may revise it later this year when it releases final figures for the month. Moreover, given current weather conditions across much of the country, motorists are likely driving less. If the estimate is not revised, one reason for the jump could be the weather caused motorists to fill-up and stock-pile ahead of the storms. Despite the increase in demand, high levels of gasoline stocks may keep average pump prices in check. Last week’s total domestic gasoline stocks fell slightly to 257.4 million bbl, which is still over 15 million bbl higher than were stocks sat last year at this time. The increased stock level may help to stabilize prices, while feeding growing domestic gasoline demand.
Gas Demand Skyrockets to Summer Level