US Gasoline Stocks Strain Ahead of Driving Season

U.S. gasoline saw another week of inventory declines last week, although the fall was more modest than what we have seen in recent weeks, with stocks falling by just 482,000 bbls to 219.7mn bbls.

• Gasoline stocks on the East Coast have been the biggest concern for suppliers, having travelled on a steady decline since January - but the trend was reversed last week as inventories bumper higher to 52.1mn bbls, 662,000 bbls higher than the week prior.
• The Memorial weekend holiday at the end of this week, marks the start of the summer driving season when US drivers typically kick up a gear in terms of miles travelled.
• Record high pump prices are yet to show any meaningful demand destruction while the Biden administration is considering a range of options to try and supress them. Efforts to quell prices going into the summer months runs the risks of encouraging higher demand and placing further pressure on stocks.