Demand for US refined products to remain higher - Aug 10
Posted: Wed Aug 10, 2022 11:02 am
Last week the EIA put out some "propaganda" that gasoline demand has fallen sharply. The industry says the opposite it true.
U.S. oil refiners, pipeline companies expect strong demand for rest of 2022. Reuters.
U.S. oil refiners and pipeline operators expect energy consumption to be strong for the second half of 2022, even though analysts and industry watchers have worried that demand could falter if the global economy enters a recession or high fuel prices deter travelers. The company outlooks suggest a stronger view than recent data showing weakness in U.S. fuel demand, particularly in gasoline, where consumption recently hit its lowest level since February (per EIA) even though this is the middle of the peak summer driving season. U.S. gasoline product supplied over the past four weeks recently fell below 2020's level for the same time of year, when the United States was in the depths of the pandemic.
"Management sees what's going on on the ground so any time they're calling out positivity when demand data has been showing otherwise, we find that interesting," said Kian Hidari, an analyst at Tudor, Pickering, Holt and Co. "It's still a strong environment for gasoline compared to historical levels."
Read more: https://www.reuters.com/business/energy ... 022-08-09/
U.S. oil refiners, pipeline companies expect strong demand for rest of 2022. Reuters.
U.S. oil refiners and pipeline operators expect energy consumption to be strong for the second half of 2022, even though analysts and industry watchers have worried that demand could falter if the global economy enters a recession or high fuel prices deter travelers. The company outlooks suggest a stronger view than recent data showing weakness in U.S. fuel demand, particularly in gasoline, where consumption recently hit its lowest level since February (per EIA) even though this is the middle of the peak summer driving season. U.S. gasoline product supplied over the past four weeks recently fell below 2020's level for the same time of year, when the United States was in the depths of the pandemic.
"Management sees what's going on on the ground so any time they're calling out positivity when demand data has been showing otherwise, we find that interesting," said Kian Hidari, an analyst at Tudor, Pickering, Holt and Co. "It's still a strong environment for gasoline compared to historical levels."
Read more: https://www.reuters.com/business/energy ... 022-08-09/