High imports, soft summer demand weigh on US gasoline
By Nicole Jao and Shariq Khan
New York (Reuters) -us gasoline prices may fall below $ 3 this summer for more than four years, as bad weather events reduce fuel demand and fill the import inventories.
Gasoline prices in recent months, this summer is a blessing for traveling Americans. Consumers, Russia’s 2022 Ukraine invasion increased the energy markets after the pumps endured at record prices.
Since the latest consumer price index report fell more than 20% due to the US rude prices and concerns about the trade war with China, gasoline prices fell by 8.3% in the 12 -month period that ended in June. Low oil prices reduce the cost of refiner to produce engine fuels, and some savings are usually transferred to consumers.
WE President Donald Trump Although analysts say that the presidents ultimately have little effect on pump prices, he promised to reduce fuel prices.
The week ended on July 4, usually fell 2.5% from the same time of last year among the highest consumption periods. Analysts, slowing, some of the country’s excessive heat cover that may have deterred some driving, he said.
AAA data, after the independence day holiday, the national average gasoline price fell to $ 3.14 per gallon, the lowest in the summer months in four years. Average gas prices in the United States have not fallen below $ 3 of a gallo since May 2021.
The summer is typically the most intense season for gasoline consumption in the US, but the gasoline product, which is the demand proxy of the US Energy Information Administration, has decreased by 9.2 million barrels per day for the last four weeks compared to the same period last year.
Pandemic changes in more fuel -saving vehicles and driving molds on the road – especially remote working – US gasoline consumption is expected to permanently reduce more than 9.3 million BPD peaks in 2018.
“As I move towards August, gasoline will see additional weakness,” Gasbuddy’s Patrick De Haan, President of Patrick De Haan. He said. “The national average has a chance to fall below $ 3 per gallon in September.”
De Haan, OPEC’s decision to increase raw production with a larger 548,000 BPD in August in August added more pressure to oil prices, he said.
Import Jump
The imported gasoline flowing to the USA also caused an increase in storage demand.
Weekly US gasoline imports, Canada and Europe from the flow of shipment of the government data, for more than a year, the highest of 100,700 BPD peaked. In June, imports increased by 7% compared to the same period of the previous year.
