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Gasoline Demand to Fall After Summer Peak: BofA

OIL PRODUCTS

Gasoline demand is set to decline after the peak summer season with a gloomy macro outlook amid high interest rates according to a BofA note.

  • A reduction in demand will also be driven by negative seasonal trends and rising longer-term competition from EVs. Working from home trends continue to shave gasoline demand.
  • Supply is expected to rise with refining capacity expanding at a rapid pace again with low natural gas prices encouraging higher runs.
  • Much of the expected summer strength for gasoline is already priced into the market.

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