US Fuel Demand Surges to Record on Buzzing Holiday Activity

Andrew Lipow of Lipow Oil Associates in Houston warned that the volatility in the figures could mean next week’s numbers will drop off sharply.

David Gaffen, Reuters

U.S. implied consumer petroleum demand surged to an all-time high last week on the back of holiday demand and travel—even as the Omicron variant of coronavirus threatens to dent oil consumption in coming months.

Overall crude stockpiles fell due to rising exports, and inventories for gasoline and distillates were also down, the U.S. Energy Information Administration (EIA) said Dec. 15.

Product supplied by refineries, a proxy for demand, surged in the most recent week to 23.2 million bbl/d, due to gains in gasoline, diesel and other refined products. The less volatile four-week average was 21.3 million bbl/d, ahead of pre-pandemic levels, and the strongest in December since 2018.

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