May 22, 2024 15:11 GMT
US Fuel Demand Showing Signs of Recovery
OIL
The latest EIA weekly petroleum status report for the week to May 17 showed an increase in key fuels demand to counter some of the recent weakness.
- Four week implied gasoline demand has risen for a third week to counter the decline seen during April and is now just the lowest since 2022. Signs of weak demand are easing ahead of the start of the upcoming peak travel demand season.
- Weekly implied distillates demand edged higher with the four week average extending the recent recovery but still below seasonal levels seen in all recent years except for 2020. Demand has risen by nearly 300kbpd in the last month and edging towards year ago levels. The demand baseline is likely lower due to renewable diesel output according to Bloomberg.
- Jet fuel demand, on a four week basis, is above levels seen in 2023 with an increase in travel on warmer US weather. Demand is expected to continue to rise ahead of the Memorial Day holiday and traditional start of the peak summer season.
Source: MNI / EIA
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