Gasoline Demand Failed To Hit Record Over Memorial Day Driving Weekend -- June 4, 2015

Tyler formation oil note: a reader tells me that Marathon is plugging both of its wells in Slope county. The paperwork has been filed and there is currently a plugging rig on the Powell right now with the plan to move to the Rundle well next.  Marathon still has one well permitted in Slope. We can watch the daily activity report to see if that last permit is canceled.

Now back to gasoline demand.

Links:

• gasoline supplied
• gasoline demand

I was wrong. I thought gasoline demand would hit a record over the Memorial Day weekend, exceeding 9.5 million bbls/day, what with relatively low gasoline prices and a recovering economy, but surprisingly, the number failed to even go over 9 million bbls. The previous week gasoline supplied average 9.734 million bbls.

So, it looks like we will have to wait until August to see if we hit new records.

Meanwhile, over at the second link, gasoline demand shows a slightly higher demand in 2015 than last year (2104).

Growing up in North Dakota, I always thought summer began during third or fourth week of May, and that the driving season would begin in June. But when one looks at the second link, it's amazing to see gasoline demand drop off in June. I assume a lot of that has to do with the fact that schools are still in session in June on both the east coast and the west coast. Here in Texas, today is the last day fo school for the students, and it's a half-day at that. Tomorrow is a school day but only for teachers.

I'm still looking for 10 million bbls of gasoline/day in August.

AAA's take on gasoline demand, this summer, dated June 1, 2015.

From AAA's fuel gauge report, note that diesel is significantly cheaper than "regular" gasoline.

If I had to come up with one data point to reflect the state of the US economy, it would be the price of diesel relative to the price of gasoline.

By the way, compare the California diesel/gasoline prices with similar numbers from North Dakota, New York, and Florida. Remember, Florida is not exactly a major farming or manufacturing state, at least compared to California. The numbers are startling.

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Energy Cookie

Today's EIA energy cookie:

EIA's Annual Energy Outlook 2015 (AEO2015) projects that U.S. supply of lighter API gravity crude oil from formations in regions such as the Bakken, Permian Basin, and Eagle Ford continues to outpace that of medium and heavier crudes. Although the rate of growth in light sweet crude slows after 2015 in the Reference case, 56% of EIA's projected production growth between 2014 and 2020 consists of sweet grades with an API gravity of 40 or above. Another 33% of the growth is attributable to an increase in Lower 48 states offshore production, which is categorized as medium sour with an API gravity between 27 and 35. --- EIA

US refiners along the gulf were optimized for heavy oil, and that's why US light oil swaps for non-US heavy oil makes all kinds of sense.