"The EIA (U.S. Energy Information Administration) reported that US refinery crude oil demand rose by 241,000 bpd (barrels per day) to 16,938,000 bpd on April 7–14, 2017. US refinery crude oil demand rose 1.4% week-over-week and 5.2% YoY (year-over-year). Refinery demand hit the highest level of 17.1 million barrels per day in January 2017. US refineries operated at 92.9% of their operable capacity in the week ending April 14, 2017. Refinery demand rose for the fifth straight week. The rise in refinery demand is bullish for crude oil."
U.S. refineries are now done with annual maintenance and they are going to ramp up summer blend gasoline production. "Summer Blends" require more crude oil.
Also ... "The EIA (U.S. Energy Information Administration) reported that US distillate inventories fell by 2 MMbbls (million barrels) to 148.3 MMbbls on April 7–14, 2017. Surveys estimated that US distillate inventories would have fallen by 1 MMbbls on April 7–14, 2017."
Distillate inventories are still high, so refiners will focus on making more gasoline. "Distillates" included diesel.
Why did gasoline inventories go up?
Why did gasoline inventories go up?
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group