At 9.45 million b/d, consumer demand for gasoline hit one of its lowest levels this summer last week, according to the Energy Information Administration. This is nearly 60,000 bbl lower than the previous week and 176,000 b/d below the rate during this time last year. While low for the season, last week’s rate is still robust for the summer, but it underscores that the summer driving season is winding down. Tepid demand alongside growing domestic stocks of gasoline, which increased 1.2 million bbl last week, could cause pump prices to dip slightly in the run-up to Labor Day. However, demand is expected to spike around the holiday, leading to a likely, but brief price jump, as drivers take to the nation’s roads one last time before fall arrives.
Gasoline Demand Slumps in Final Weeks of Summer