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Petroleum industry

Summer Gasoline Demand to Reach Record High

Strategic Insights

— 1 min read

Gasoline demand in the United States is expected to reach a record 7.89 million barrels per day (b/d) this summer, a 1.8% increase from last summer's demand, according to the Energy Information Administration (EIA). The growing demand, without a corresponding increase in production capacity, will lead to higher domestic refinery utilization and increased dependence on imports. As a result, refinery utilization is predicted to average 94.3% this summer, producing 7.36 million b/d of gasoline, while imports will make up almost 5% of demand, averaging 370,000 b/d.

Key Takeaways:

  • U.S. gasoline demand is predicted to reach a record 7.89 million b/d, a 1.8% increase from last summer's demand.
  • Refinery utilization will average 94.3% this summer, producing 7.36 million b/d of gasoline.
  • Imports will make up almost 5% of demand, averaging 370,000 b/d.
  • Gasoline prices are expected to increase by 5 cents per gallon over last summer to $1.24 per gallon, with RFG prices running 2-4 cents higher than conventional-grade gasoline.
  • The combination of higher crude prices, RFG, and increased imports will push retail gasoline prices up.
  • Global oil demand is expected to increase by 900,000 b/d in 1995 and an additional 1.3 million b/d in 1996, with U.S. petroleum demand rising 0.6% to 17.79 million b/d in 1995 and 2.6% to 18.25 million b/d in 1996.
  • Oil demand in Asia and countries of the Organization for Economic Cooperation and Development (OECD) is expected to increase through 1996, while a small decline is predicted in the former Soviet Union and Eastern Europe.

Statistics:

  • U.S. gasoline demand: 7.89 million b/d (summer 1995), a 1.8% increase from last summer's demand.
  • Refinery utilization: 94.3% (summer 1995).
  • Imports: 370,000 b/d (summer 1995), making up almost 5% of demand.
  • Gasoline prices: $1.24 per gallon (summer 1995), a 5 cents per gallon increase over last summer.
  • Global oil demand increase: 900,000 b/d (1995), an additional 1.3 million b/d (1996).
  • U.S. petroleum demand: 17.79 million b/d (1995), a 0.6% increase from 1994; 18.25 million b/d (1996), a 2.6% increase from 1995.

Sources:

  • Energy Information Administration (EIA), "Summer 1995 Gasoline Assessment" report.
  • EIA, 1995 second-quarter "Short Term Energy Outlook".

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