Fuel Down 15-20 Cents after Delayed EIA Report

Fuel prices are falling steeply this morning as the market digests two weeks of EIA data, which delayed its reporting due to technical issues. Adding to market volatility, OPEC+ agreed to continue with their plan and raise production in August. The OPEC+ deal runs through the end of September, after which countries will technically be free to produce as much as they’d like. Of course, it’s unclear whether countries will be able to keep up with the August production hike, let alone further increases once the deal expires. Getting back to the EIA data, the recent report reveals important changes related to two stats: fuel demand and fuel inventories.

First, fuel demand is down – and this time COVID isn’t to blame. After years of weakened fuel demand due to COVID shutdowns, the market had expected heavy demand this year. Earlier this year, demand seemed to be on-par with the pre-COVID average, but the past few weeks have shown a marked decline. Gasoline demand is down 13% compared to the pre-COVID average. Diesel demand has also been weak, down half a million barrels per day from Q1 2022 levels. With no major surges in COVID lockdowns, reduced demand seems to be stemming from higher fuel costs and inflation – perhaps a leading indicator of an economic downturn.

Second, inventories are (finally) improving. Diesel has been a big concern for the market, since Europe relies heavily on diesel fuel for both consumer and industrial demand and can no longer purchase Russian oil. In the US, diesel inventories remain sharply below the pre-COVID range, but they have climbed 8 million barrels higher since bottoming out in May. Markets are responding favorably to rising gasoline and diesel inventories.









Market Condition Report - Disclaimer
The information contained herein is derived from sources believed to be reliable; however, this information is not guaranteed as to its accuracy or completeness. Furthermore, no responsibility is assumed for use of this material and no express or implied warranties or guarantees are made. This material and any view or comment expressed herein are provided for informational purposes only and should not be construed in any way as an inducement or recommendation to buy or sell products, commodity futures or options contracts.

Sign up for FUELSNews for daily market information and insights
Sign Me Up
Give Us a Call Today

We are happy to discuss your business challenges over the phone and answer any questions.


Send Us an Email

Ask your toughest questions. We'll get back to you with the best answer humanly possible.

Send Email

Find a Mansfield Location

Need to contact a specfic office? View contact information for offices across the country.

View Locations

Get a Quote Today

Let us know what type of fuel or service you need and a team member will get a quote to you quickly.

Get a Quote