US gasoline demand will be slightly higher this year than the Energy Information Administration (EIA) expected a month ago and distillates demand will be even lower, according to the agency's latest Short-Term Energy Outlook.
The EIA revised its 2016 gasoline demand higher by 0.2pc to 9.25mn b/d, approaching the 9.29mn b/d peak set in 2007. Higher summer demand, including a 20,000 b/d increase in the second quarter, helped push the estimate higher from February expectations. Retail prices will average below $2/USG in both 2016 and 2017, helping to drive demand, according to the outlook. EIA continues to expect improving vehicle fuel efficiency to restrain gasoline demand below 2007 levels. Gasoline demand will fall by 10,000 b/d to 9.24mn b/d.
The forecast for US distillate demand fell by 60,000 b/d to 3.93mn b/d in 2016 compared to the February outlook. Stronger economic and manufacturing demand will push diesel supplied higher in 2017, but the EIA reduced its expectations by 50,000 b/d to 4.04mn b/d.
