Gasoline stocks fell in the US for the second consecutive week in the week ending 10 July , with the cumulative draw over this period totalling around 8 million barrels (EIA), with the major draws happening in PADD-1 and PADD-3.
Although implied demand estimates suggest consumption has stagnated in recent weeks, stockdraws have been helped along by a return to net-exporting, a seasonal role reversal, given that the US typically net imports sizeable volumes during the summer driving season.
Looking forward, we are currently somewhat more bearish on the recovery of US oil demand relative to even a month ago, with our current base case seeing y-o-y declines in gasoline demand strengthening over July, which may see country needing to offload additional surplus volumes in the coming weeks .
15 Jul 2020 Featured in: Americas Weekly - Issue 28
Research Highlights - Week 29
The need to offload excess product has seen the US net-exporting gasoline at the height of the summer driving season (see Americas Weekly – Issue 28)