US Gasoline Inventories are at a 27-Year High
US gasoline consumption down 8% from same period in 2016
February 21, 2017 David Camp
As the graphic shows, US gasoline inventories are at a 27-year record high. And yet, gas prices and oil prices continue to rise – having increased by about 30-40% (depending on the grade and source) in 2016. And as the second graphic shows, US gasoline consumption in the first part of 2017 is down 8% from the same period in 2016. Strange things are happening –
The glut of gasoline has led to tankers being turned away at New York Harbor in recent weeks, diverted to ports in the Caribbean. However, even that did not resolve the glut on the U.S. east coast. “Record-high inventories in the region are now pushing prices low enough to turn the typical trade flow on its head,” Bloomberg reports. The east coast typically imports a lot of crude oil and refined products. But refined products are instead heading in the other direction because of the buildup in supply.
Read David’s complete article on NorthwestCitizen here.