U.S. Gasoline Inventories Hit 10-Year Low at 215.1 Million Barrels as Summer Demand Outruns Supply
Updated
Updated · Reuters · Jun 11
U.S. Gasoline Inventories Hit 10-Year Low at 215.1 Million Barrels as Summer Demand Outruns Supply
3 articles · Updated · Reuters · Jun 11
Summary
215.1 million barrels of U.S. gasoline were in storage in early June, the lowest seasonal level in a decade after inventories fell more than 34 million barrels since the Iran war began.
9.5 million bpd of total demand for U.S.-produced fuel could hit this summer, analysts say, exceeding current gasoline-making capacity of about 9.2 million bpd as domestic demand stays firm and exports remain strong.
95.3% refinery utilization in the first week of June has not prevented the squeeze because refiners are favoring higher-margin diesel and jet fuel; U.S. diesel and jet exports reached 54.65 million barrels in May.
483,000 bpd of crude-processing capacity was offline on average in April in the highest unplanned outage rate in five years, leaving little buffer if plants cannot keep running hard through peak driving season.
The Strait of Hormuz disruption has tightened global fuel markets and made European gasoline relief less practical, raising the risk of weekly U.S. inventory draws of 2 million to 3 million barrels.
Are U.S. drivers subsidizing Europe's energy crisis as refiners chase profits from soaring fuel exports?
With Hormuz shut, are the world's backup oil pipelines already on the brink of failure?
With the Hormuz Strait closed, what is the truth behind President Trump’s claim of secret U.S. oil shipments?
U.S. Gasoline Stocks Hit 5% Below Average: Geopolitical Shocks, Price Surges, and the Road Ahead
Overview
U.S. gasoline inventories are significantly below normal seasonal levels, and recent gains have not been enough to restore typical averages. This ongoing deficit points to deeper challenges in the nation’s fuel supply chain, leaving the market with less buffer than usual. Crude inventories and Gulf Coast stocks have also sharply declined, showing a widespread reduction in available fuel resources. Despite U.S. refineries running at high capacities to meet demand, the shortfalls are not due to a lack of refining effort. Instead, strong demand and systemic pressures are outpacing the industry’s ability to replenish stocks.