0 U.S. gasoline demand hits a record in March, climbs to ‘typical’ summer levels By Myra P. Saefong Published: Mar 20, 2018 5:36 a.m. ET
Gasoline prices up 26 cents a gallon vs. year ago: AAA
A customer prepares to pump gasoline into his car at a gas station on May 10, 2017 in San Anselmo, California. (Photo by Justin Sullivan/Getty Images)
Gasoline demand at the pump hit a record level in March that’s typically seen during the summer driving season, motoring and leisure travel membership organization AAA said Monday. FUTURES AND OPTIONS TRADING INVOLVE SIGNIFICANT RISK OF LOSS AND MAY NOT BE SUITABLE FOR EVERYONE. OPTIONS, CASH AND FUTURES MARKETS ARE SEPARATE AND DISTINCT AND DO NOT NECESSARILY RESPOND IN THE SAME WAY TO SIMILAR MARKETS STIMULUS. A MOVEMENT IN THE CASH MARKET WOULD NOT NECESSARILY MOVE IN TANDEM WITH THE RELATED FUTURES & OPTIONS CONTRACT BEING OFFERED. SEASONAL DEMAND AND CURRENT NEWS IN COMMODITIES ARE ALREADY REFLECTED IN THE PRICE OF THE UNDERLYING FUTURES.
The Energy Information Administration data show that U.S. motor gasoline product supplied, which offers a gauge of demand, rose to 9.64 million barrels a day for week ended March 9, from roughly 9.28 million barrels a day a week earlier. The latest EIA report shows gasoline demand at “levels typical of summer months, not the first quarter of a year,” with exports continuing to “trend high, accounting for a large chunk of this week’s demand data, according to AAA. “As demand strengthened, gasoline inventories declined, pushing the national gas price average two cents more expensive on the week to $2.55,” said Jeanette Casselano, a spokeswoman for AAA. The EIA reported on Wednesday a hefty 6.3 million-barrel decline in weekly U.S. motor gasoline inventories, as crude US:CLJ8 stockpiles jumped by 5 million barrels. The national gas price average is also two cents more than a month ago, and 26 cents higher than this time last year, said Casselano. Among the most expensive states for gasoline were Hawaii at $3.50, California at $3.41 and Alaska at $3.07, AAA said.
Looking ahead, Patrick DeHaan, head of petroleum analysis at gas price tracker GasBuddy, said gasoline prices are likely to continue moving higher in the coming weeks “as demand continues to recover from the winter blues and the transition to summer gasoline kicks into high gear.” He expects gas prices this spring to “come in some 10%-25% higher than a year ago, removing billions of dollars from other areas of the economy that will instead be funneled to the pump.” FUTURES AND OPTIONS TRADING INVOLVE SIGNIFICANT RISK OF LOSS AND MAY NOT BE SUITABLE FOR EVERYONE. OPTIONS, CASH AND FUTURES MARKETS ARE SEPARATE AND DISTINCT AND DO NOT NECESSARILY RESPOND IN THE SAME WAY TO SIMILAR MARKETS STIMULUS. A MOVEMENT IN THE CASH MARKET WOULD NOT NECESSARILY MOVE IN TANDEM WITH THE RELATED FUTURES & OPTIONS CONTRACT BEING OFFERED. SEASONAL DEMAND AND CURRENT NEWS IN COMMODITIES ARE ALREADY REFLECTED IN THE PRICE OF THE UNDERLYING FUTURES.