Weak US gas demand clouds oil outlook

The US gasoline market is flashing signs of weakness at the start of summer driving season, a time it generally picks up strongly, and analysts say this clouds the picture for oil demand ahead of the OPEC+ group policy meeting that kicks off this weekend.

US gasoline demand fell about 2% week-over-week to 9.15 million barrels a day, even as refiners ramped up to their highest run-rate in nine months, government data for the week ended May 24 showed. That led to a surprise jump in gasoline inventories, which pushed futures prices for the fuel to a three-month low on Thursday.

The difference between gasoline futures and US oil futures, a measure of refiners’ margins on gasoline, also slipped to a three-month low.

Published in The Express Tribune, June 2^nd, 2024.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.