Tags: Gasoline | Production | Demand | United States

Gasoline Production Rises to Record in the US as Demand Grows

Wednesday, 18 Jun 2014 01:16 PM

U.S. gasoline production increased to a record last week as demand grew and the profit to process oil into the fuel rose.

Output jumped 11 percent from the previous week to 9.84 million barrels a day in the seven days ended June 13, the highest level since Energy Information Administration data started in 1982. Demand jumped 7.4 percent in the same period. The crack spread, the profit for refineries to process crude and sell gasoline, surged to the highest since April.

“It’s the summer driving season and demand is going to be rising over the next few months,” said James Williams, an economist at WTRG Economics, an energy-research firm in London, Arkansas. “The margins are high.”

Gasoline production is up 18 percent from this year’s low of 8.33 million on Jan. 10. The weekly data are adjusted to include blending of fuel ethanol and gasoline blending components.

Gasoline futures climbed for a third day, adding 0.2 percent to $3.0983 a gallon on the New York Mercantile Exchange. Crude oil futures dropped 0.4 percent to $105.94. The gasoline crack rose to $24.15 a barrel based on front-month futures, the highest since April 30, according to data compiled by Bloomberg.

Demand for the fuel increased 634,000 barrels a day last week to 9.26 million, the EIA, the Energy Department’s statistical arm, said. The summer driving season traditionally starts on Memorial Day and ends on Labor Day.

Regular gasoline prices at the pump averaged $3.669 a gallon Tuesday, up for a seventh day, according to AAA, the largest U.S. motoring company.

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U.S. gasoline production increased to a record last week as demand grew and the profit to process oil into the fuel rose.
Gasoline, Production, Demand, United States
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2014-16-18
Wednesday, 18 Jun 2014 01:16 PM
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