US gasoline demand at 8-year high: EIA

OREANDA-NEWS. May 29, 2015. Implied US gasoline demand last week hit its highest levels in almost eight years as production and consumption shattered seasonal records, according to the Energy Information Administration (EIA).

Total motor gasoline supplied increased by 473,000 b/d from the previous week to 9.734mn b/d, the highest level since 17 August, 2007, according EIA data. Adjusted gasoline production over the same period surged higher by 513,000 b/d to 10.164mn b/d, its highest level since December.

The data suggests demand has continued to climb earlier than the peak US driving season and despite a narrowing discount in retail gasoline prices to year-ago levels. National average retail gasoline prices have increased every week since mid-April, but last week averaged 90?/USG cheaper than year-ago prices.

Attractive crack spreads have pushed high refining throughputs through uncertain demand, to a seasonal record 16.45mn b/d, a 237,000 b/d increase over the previous week. US independent refiners late last month were cautiously optimistic about second quarter demand, but some at the time considered EIA demand estimates overstated.

Total US gasoline in storage fell by 3mn bl over the same period, to 479mn bl. US gasoline exports fell by 22pc from the previous week, to 426,000 b/d, and gasoline imports surged higher by 43pc to 775,000 b/d.

US Gulf coast, west coast and Atlantic coast refiners all increased crude throughputs from the previous week. US west coast refiners boosted rates by 2.87pc to 2.369mn b/d as the region works through planned and unplanned maintenance. Gasoline production on that coast fell from the previous week, by almost 2pc to 1.599mn b/d, but remained 4.55pc higher than the 10-year average.

US Gulf coast refiners boosted crude throughputs by 2.5pc, to 8.6mn b/d, and gasoline production by 6.33pc, to 2.134mn b/d, according to the EIA. But refiners in that region favored diesel production, which was 7pc higher than year-ago levels at 2.489mn b/d and almost 40pc higher than the 10-year average. Gasoline production in the region was at almost 70pc of the 10-year average.

Atlantic coast gasoline production was at its highest in at least 10 years, at 3.254mn b/d. Refiners were running at the highest crude throughputs since June 2014, at 1.194mn b/d.

US midcontinent refiners reported effectively flat crude throughputs at 3.695mn b/d and a 1.64pc decrease in gasoline production, to 2.642mn b/d.